Whangarei District Council Annual Plan 2020-21

Your Elected Members

Mayor Sheryl Mai Councillor Greg All communications to Her Martin Worship go to the Mayor’s Hikurangi-Coastal Ward personal assistant. Home 09 433 5629 Phone 09 470 3029 Mobile 027 283 6147 Email [email protected] Email [email protected]

Deputy Mayor Greg Councillor Anna Innes Murphy Whangarei Heads Ward Hikurangi-Coastal Ward Mobile 027 495 3382 Mobile 022 649 8730 Email [email protected] Email [email protected]

Councillor Shelley Councillor Ken Deeming Couper Bream Bay Ward Bream Bay Ward Home 09 432 3779 Mobile 021 464 069 Mobile 027 275 7330 Email [email protected] Email [email protected]

Councillor Vince Councillor Jayne Cocurullo Golightly Denby Ward Okara Ward Home 021 186 1989 Mobile 021 438 952 Mobile 021 348 079 Email [email protected] Email [email protected]

Councillor Tricia Councillor Simon Cutforth Reid Denby Ward Mangakahia-Maungatapere Ward Mobile 027 287 0366 Mobile 021 938 268 Home 09 437 3481 Email [email protected] Email [email protected]

Councillor Gavin Councillor Carol Benney Peters Okara Ward Denby Ward Home 09 437 0185 Mobile 021 256 0126 Mobile 021 557 498 Email [email protected] Email [email protected]

Councillor Phil Councillor Nicholas Halse Connop Okara Ward Okara Ward Home 09 430 2251 Mobile 021 453 912 Mobile 027 303 5671 Email [email protected] Email [email protected] Contents

Introduction ...... 4 Group entities ...... 83 Message from the Mayor ...... 5 Local Government Funding Agency . .87 This is your District ...... 6 Financial information ...... 89 What is the Annual Plan 2020-21 . . 6 Financial statements ...... 90 Our Vision ...... 7 Notes to the Financial Statements . .97 Our Community Outcomes ...... 7 Benchmarks ...... 122 Overview of the 2020-21 Annual Plan 8 Full list of capital projects planned COVID-19 response ...... 9 for 2020-21 ...... 125 What does COVID-19 mean for the Rates information ...... 133 2020-21 Annual Plan ...... 10 Funding impact statement . . . . . 134 Changes to rates...... 11 Supporting information . . . . . 146 Targeted $3m relief package for Governance structure ...... 147 2020-21...... 13 Organisational structure...... 148 Our Plan at a glance ...... 14 General information ...... 149 Sourcing extra funding from central Abbreviations and acronyms . . . . 150 government ...... 18 Glossary ...... 152 Checking in with our community . . .19 Index ...... 155 Council and Māori working in partnership ...... 22 Council activities...... 23 Introduction ...... 24 1. Transportation ...... 26 2. Water ...... 32 3. Solid waste ...... 38 4.Wastewater...... 41 5. Stormwater ...... 45 6. Flood protection ...... 48 7. Community facilities and services .51 8. Governance and strategy ...... 66 9. Planning and regulatory services. .69 10. Support services ...... 79

3 Introduction

4 Message from the Mayor

Tēnā tātou katoa i tēnei wā o te haumaru whai ake ngā wero o te mate urutā huri noa i Te Ao. Mā mātou hoki ngā whakamoemiti. Ngā mihi ki ngā mate. E ngā iwi o Whangārei Te Terenga Paraoa ka mihi kia koutou, tēnā koutou katoa. Greetings to all at this time of safety following the challenges of the worldwide pandemic. We are thankful. Farewell to our loved ones. All the people of Whangārei greetings to you, greetings to all. With COVID-19 sweeping the globe, 2020 has been a year like no other. Our 2020-21 Annual Plan reflects this as we adapt to the challenges and uncertainty of this time. The pandemic has interrupted a sustained period of growth for Whangārei District. In the following pages, you will find a plan for Year 3 of our 2018-2028 Long Term Plan (LTP) that focuses on kotahitanga, whanaungatanga, collective action, care and recovery. Before adopting this plan, we sought feedback on a reduced general rates rise of 2.2% (inflation) and a $3m targeted Relief Package to support our ratepayers, community groups and businesses. Working within the restrictions of COVID-19, we were still able to connect and engage, receiving just over 120 submissions on this year’s proposed plan. With a majority of submitters in support of the draft Annual Plan, Council voted to reduce its rates rise to 2.2% this year and proceed with the $3m Relief Package. Our District now has in place a plan that allows us to continue providing almost all services at the same standard you’ve been used to. It also enables us to keep delivering what you told us was important in our last Long Term Plan (LTP). Delivery of Council’s capital programme will play an important part in our District’s economic recovery. At the same time, our Relief Package means we have support available for any ratepayers, businesses and community groups who need some extra help today. We now move ahead with our eyes forward and our hearts open. We will take every opportunity to make our place a more environmentally sustainable, inclusive and resilient home for us all.

Ngā mihi nui Sheryl Mai Mayor of Whangarei

5 To find more What is the information on our 2018-28 LTP, Annual Plan take a look at 2020-21? www.wdc.govt.nz/ltp The Annual Plan 2020-21 is Year 3 of our Long Term Plan 2018-28 (LTP), and is our financial forecast for the next 12 months. It identifies Council’s activities, how they will be This is your funded and where budget has been allocated from July 2020 to June District 2021. You can read about Council’s activities in pages 23 to 82 and the detailed financial information in pages 89 to 121.

Long Term Plan (LTP) LTP YEAR 1 Council’s finances & direction set for the next 10 years Annual Plan Annual Report LTP YEAR 2 Year 2 finances and direction reviewed Annual COVID-19 HITS Plan Annual Report WE ARE HERE LTP YEAR 3 Year 3 finances and direction reviewed LTP Annual Reviewed Report every 3 years

6 Our Vision

A vibrant, attractive and thriving District Everything we do is guided by our vision and community outcomes. These are based on what you told us is important to you, during engagement on the LTP.

Our Community Outcomes

Eﬃcient and resilient core services • It is easy and safe for everyone to travel around the District • There are opportunities to walk and cycle • The District is well prepared for growth and can adapt to change • Services are supplied in ways that beneﬁt the environment. Positive about the future • The District has productive land, people and a thriving city centre • There is a fair urban/rural balance • Council has clear, simple documents and rules • The District embraces new technology and opportunities. Caring for the environment • Communities work to keep the environment clean and healthy • Access to the coast is protected • Open spaces in parks and streets are places where nature thrives • The District is positively adapting to climate change. Proud to be local • The District is neat, tidy and looks attractive • Public areas feel and are safe • There is always something to do and see • There are opportunities for people of all abilities, ages and life stages to be active.

7 Overview of the 2020-21 Annual Plan

Our original budget and work programme for this coming year was prepared as part of the 2018–28 LTP for a different looking future. We have readjusted and directed our focus toward building business confidence and helping relieve the burden of COVID-19 on our people and communities. Our original plan had been to increase our revenue so that we could continue to build and maintain the infrastructure our growing District needs – things like roads, water pipes and wastewater systems. To pay for this we had proposed a rates increase of 4.2%. We have now changed these plans to recognise the financial pressure people are under. At the same time, we have reviewed our budgets to enable us to invest in Whangārei’s recovery. This year we will have a smaller rates rise of 2.2%. We will also have a new $3m Relief Package and we will be seeking funding from central government for key infrastructure and economic development projects. This approach allows us to balance rates affordability, while continuing to pay for the things the District needs day-to-day and deliver planned programmes. However, COVID-19 may still prevent us from meeting some of our service levels for highly affected areas, like Venues and Events. Our commitment is to do the best we can here, while working within the guidance from central government. As we look towards our next 10-year plan, we will move from our initial response to COVID-19 to put in place actions and funding to reset our economy to be more resilient, equitable and sustainable.

8 COVID-19 response

This year we are faced with challenges of the economic impacts of COVID-19. Our Council was quick to set a framework to respond to COVID-19, which was the key focus of the Annual Plan consultation. The COVID-19 pandemic has swept across the globe and is expected to continue to place pressure on communities as we move out of lockdown and into the new normal. Our 10-Point Economic Recovery Response is designed to provide immediate beneﬁt to businesses and households in our District through this time. These things are being put in place now to help restart the economy, reduce future pressure on the community and support the District’s recovery. As you read on, you will see many of these points have been included in this plan. This response is the ﬁrst step in our COVID-19 Response Strategy. Through the Annual Plan we will be delivering support for our community with a $3m relief package. Our 10-point economic recovery response

RReviewingeviewing our planned Operational budget Support for those ratteses increeasease review strustrugglingggling to pay ra tes, fees and charges

Community More frequent payments Rent relief for commercial support ttoo Council suppliers and community tenants

Support for Boosting Council’s capital For more businesses programme to help the information recovery about our 10-point Economic Recovery Response visit www.wdc.govt.nz/ Emergency Forward planning Recovery response reset

9 What does COVID-19 mean for the 2020-21 Annual Plan?

The hard reality of a recession in Whangārei will mean: • job losses across all sectors, but particularly in manufacturing, tourism and construction • slower than expected population growth in the short term • a drop or holding pattern in major investment • some local businesses closing, particularly small businesses • contraction of the housing market. The recession will hit Council too. Our non-rates revenue is expected to go down by as much as 5% in the 2020-21 year as a result of COVID-19. We have adjusted our planned rates increase so that we can deliver our services and projects while reducing costs. This includes trimming expense budgets by $3.7m from what we originally planned for and reducing staﬀ costs by $2m. This Annual Plan begins our restart and recovery of the Whangarei economy. As we move through the next 12 months we will get a better understanding of how our businesses and communities have been impacted. These learnings will inform the direction of our next 10-year plan.

Stage 1 RESTART

Help for those Supporting local struggling to pay businesses Rent relief for Council tenants

Keep Bringing spending to $3 million forward major support local COVID relief Stage 2 projects contractors & package RECOVERY Seeking suppliers potential government funding

Maintaining Planning for Reframing investment in the long- term Revitalising our Long community impact of our CBD Term Plan development COVID-19

Stage 3 RESET 10 Changes to rates

Our current LTP proposed a General Rate rise of inflation plus 2%, which would have resulted in an average General Rate rise for the District of 4.2%. When set against other revenue and expenses this would have given us a small operating surplus, which we could have used to reduce debt or reserve for future years’ programmes. Through consultation we heard support for reducing the impact on community. However every dollar we reduce our rates by is a dollar we can’t use to provide services for the community. If we cut our revenue too far, we will have a deficit that we will need to make up through bigger rate increases in later years. We think the fairest way to manage this balancing act is to reduce our planned rates increase for next year – but only to the point where we’re not too far ‘in the red’. For 2020-21, ratepayers will see their rates increase in line with inflation. General Rates and targeted rates for Wastewater and Refuse Management will increase by 2.2%. Areas where no changes have been made No increase will be made to Water Rates, as this is the one area where we have enough reserves built up from previous years to see us through for a while. There will also be no increase in the targeted rates for the Hikurangi Flood Management Scheme. What are the impacts of a 2.2% rates increase? A 2.2% rates increase will allow us to keep providing most services at the same standard you’ve been used to so that we can keep delivering what you told us was important in our last LTP. The ability to keep these programmes going as planned is an important part of Whangarei’s economic recovery (more maintenance and construction = more jobs). We will also have an ‘unbalanced budget’ next year, where our operating expenses are higher than our revenue (with some exceptions). Refer to page 122. This means we will have less flexibility to respond to requests from the community for funding community initiatives in 2020-21 and we will need to catch-up in future years.

11 Changes to how rates are shared between sectors To make sure that all ratepayers receive the same 2.2% increase, we have changed what’s called the ‘sector share’ for general rates, which is how rates are split between diﬀerent sectors (like residential or rural properties). Each sector has experienced diﬀerent levels of growth over the last few years. Following our 2018 general revaluation (and the subsequent settlement of objections), the total land value in the Commercial, Industrial, and Rural sectors has reduced. Retaining the current 2019-20 sector shares would have resulted in disproportion ately larger rates increases in these sectors compared to the Residential sector, so we consulted on the following adjustments to ensure all ratepayers receive the same 2.2% rates increase:

Sector 2019-20 share 2020-21 share Residential properties 61.32% 62.66% Multi-unit properties 0.20% 0.19% Miscellaneous properties 0.48% 0.34% Rural properties 9.50% 9.33% Commercial and industrial properties 28.50% 27.48%

12 Targeted $3m For more information about relief package for our Targeted Relief 2020-21 Package visit www.wdc.govt.nz/ We have set aside $3m for the following targeted relief Covid19Relief package for community groups, businesses and ratepayers.

Community Support for Ratepayer groups businesses support $900,000 (30%) $1,350,000 (45%) $750,000 (25%)

• Support for • Funding for Support for ratepayers operational projects partnerships to who are struggling to and delivery of provide relief to the pay rates by offering: community service business community • More time to pay the • Enhanced operational • Rent relief for tenants first rates instalment funding for of Council commercial of 2020-21 applications through property • The option to pause the Annual Operating • Funding to rates payments for Grant and Community incentivise city centre 3-6 months Funding pools regeneration and inner • Reducing penalties for • An operational reserve city living those who fall behind for specific projects as • Grant to offset license in their payments from needed fees 10% to 5%

13 Our Plan at a glance

Highlights of the 2020-21 Annual Plan This map gives a snapshot of the wide range of services that Council provides throughout our District and some of the key projects we are getting on with in 2020-21.

14 District-wide Council services A Hikurangi Flood Protection Scheme B Cemeteries C Drinking water D Roads and footpaths E Pensioner housing F Working in partnership with Māori G Community-led development H Recycling and rubbish collection I Parks and walking tracks J Civil defence K Wastewater L Servicing high-growth areas M Libraries

2020-21 key projects 1 New Whau Valley Water Treatment Plant 2 New Northland Football Hub at Tikipunga 3 Stadium upgrades 4 New skate parks 5 Urban intersection upgrades 6 New Town Basin Park and children’s playground upgrade 7 CCTV upgrades 8 Pohe Island redevelopment 9 Stormwater system improvements 10 Seal extensions on rural roads 11 Sportsﬁeld improvements 12 Walkways and tracks 13 City Centre Plan 14 Civic Centre at RSA/Forum North

15 2020-21 key projects

1. NEW WHAU VALLEY WATER TREATMENT PLANT This new treatment plant will future-proof our supply of fresh drinking water.

2. NEW NORTHLAND FOOTBALL HUB AT TIKIPUNGA We have started on this $1.2 million investment, supporting the creation of a regional hub for this growing sport and nurturing the development of our future All Whites. 3. STADIUM UPGRADES To prepare for the Women’s Rugby World Cup we will be investing in the pitch, roof and lighting at Semenoﬀ Stadium.

4. NEW SKATE PARKS We are investing in our young people by building a new skate park at Waipu.

5. URBAN INTERSECTION UPGRADES We have invested $2.4 million in the Maunu Road and Porowini Avenue intersection and are in planning for Central Avenue intersection improvements. These upgrades will help with congestion on these main routes. 6. NEW TOWN BASIN PARK AND CHILDREN’S PLAYGROUND UPGRADE The old car park next to the Canopy Bridge will be transformed into an amazing new park linking the waterfront to the city centre, while the existing children’s playground will get new equipment. 7. CCTV UPGRADES We will continue the rollout of the ﬁbre optic upgrade in the City Centre and furthering wireless capability to the suburbs.

8. POHE ISLAND REDEVELOPMENT Work here will create an attractive destination for visitors and locals while providing for sporting activities. Projects included in the LTP are two new carparks, a destination playground, public toilets, waterfront area, bike hub, youth zone/skate park upgrade, marine hub area and various connecting paths.

16 9. STORMWATER SYSTEM IMPROVEMENTS We’re putting more money into stormwater to make sure we are set up for the future, meeting the challenges of climate change and improving water quality. 10. SEAL EXTENSIONS ON RURAL ROADS Sealing of unsealed roads to help improve safety and reduce dust from road traﬃc.

11. SPORTSFIELD IMPROVEMENTS New drainage at Hikurangi, Tikipunga and Parua Bay sportﬁelds will improve their playing surfaces and decrease wet weather closures. Fields at Otangarei will get new lights. 12. WALKWAYS AND TRACKS We live in a District of great natural beauty and our 56km of walking tracks provide plenty of options for getting out in nature. We continually renew our tracks with the Tikipunga extension between the Whangarei Falls and Vinegar Hill a focus this year. 13. CITY CENTRE PLAN This year we will continue to support the revitalization of our city centre with improved connections from Rose Street bus station to Vine Street.

14. CIVIC CENTRE Whangarei District’s Civic Centre will be a central hub for democratic processes, customer services, administrative functions and Council staff. The design focus is on providing a welcoming, inclusive and easily accessible customer experience, in a building that strongly reflects our cultural identity and heritage. Our vision is to create a fit-for-purpose building with sustainable design and construction, delivering a more efficient service for our District.

17 Sourcing extra funding from central government

Council is also seeking additional Government funding through COVID-19 response programmes like the Crown Infrastructure Partners (CIP) programme for ‘shovel ready’ projects. Many of the projects we’ve applied for are already in Council’s LTP. If successful, we’ll be able to bring projects forward, and deliver them on a larger scale, to help stimulate our local economy. If we’re successful in securing this funding, we’d seek to undertake these projects in addition to those included within our 2020-21 Annual Plan. However, given uncertainty around this funding, we may need to adjust the timing of projects to incorporate those where other funding is available (i.e. delivering some projects in future years of the LTP). This would allow us to make the most of any external funding, while still meeting our commitment to you, our community, under the LTP.

18 Checking in with our community

Council carried out a 3-week consultation on the Annual Plan 2020-21. The consultation focused on the proposed changes for Year 3 of our LTP in response to COVID-19. This included reducing the overall General Rate rise to 2.2%, providing $3m in targeted relief and sourcing extra funding from central government. A print, radio and social media campaign linked people back to an online submission form on our website. We also invited feedback from over 250 stakeholders around our District, including resident and ratepayer groups. This year no community meetings or formal hearings were held due to COVID-19, and time restrictions. During the consultation, we received over 120 formal submissions. The majority of submitters supported a rates increase of 2.2% or above for 2020-21. Of the submitters that commented on the targeted relief package, a majority were in support of the proposal. All submitters that commented on Council’s proposal to source extra funding from Central Government were in support. Changes made as a result of consultation A key issue raised through submissions from our community were the targeted rates for the Hikurangi Flood Management Scheme. The Hikurangi Flood Management Scheme is located north of Whangarei and is drained by the Wairua River. The scheme provides flood protection and flood management to about 5,600 hectares of farmland. In our LTP we had originally planned for an 8% rise in 2020-21. Submissions were received from the representatives of each of the flood scheme land pockets (whose landowners pay the targeted rates) to request that the planned increase be reduced to 0%. Although this was not a specific question in our consultation on the Annual Plan, Council resolved to accommodate a change in the rates, noting that the implications were not significant or material. The reduction in revenue will not impact on the delivery of projects, but may result in the scheme going into deficit when capital works are undertaken in the later years of the current LTP. These issues will be worked through in the 2021-31 LTP. A number of submissions were received which fell outside of the scope of consultation of this year’s Annual Plan. This includes submissions requesting funding for new projects. All of these submissions will be used to inform the 2021-31 Long Term Plan process.

19 What we said What we in the LTP plan now $84.6 million $90.9 million Capital works programme Capital works programme (note this includes some opex) (note this includes some opex)

65% 60%

of capex focused on core of capex focused on core infrastructure infrastructure $160.3 million $152.9 million Operational revenues Operational revenues $146.2 million $149.8 million Operational spending Operational spending $204.6 million $149.1 million External net debt External net debt 4.2% 2.2% General rates rise General rates rise $3.0 million Targeted COVID-19 relief package

20 We have made adjustments to our operating budget

Our original budget and work Scheme (2018-28 LTP included an programme for the 2020-21 year 8% increase) was prepared as part of the 2018–28 • A targeted $3m COVID-19 relief LTP for a different looking future. Due package to support community to COVID-19 we needed to readjust groups, businesses and ratepayers and direct our focus toward building business confidence and helping • Reduced operational budgets and relieve the burden on our people and staff costs communities. Some of the key operating • Reduced non-rates revenue budgets income and expenditure adjustments These changes mean we do not achieve include: the balanced budget benchmark. This • A smaller general rates rise of 2.2% means that our operating expenses are (2018-28 LTP included a 4.2% more than our operating revenue (with increase) some exclusions). See page 122 for • No increase to the targeted rates for further information about the balanced the Hikurangi Flood Management budget benchmark.

We have tweaked our major projects budget

In past years, while heavy work capital works programme. This can be programmes were approved and funded, due to a number of factors, including we were often unable to get through contractor capacity, physical resources, as much of the planned work as we changing circumstances or a desire to expected. Over the past six years we make sure community views are properly have increased our capital expenditure considered. budget by more than 70% – going COVID-19 did delay some projects due from an annual budget of $49 million to the ability to carry out works during to $85 million. Our actual spend has the period of lock down. This delay has almost doubled (from $29 million resulted in carry forwards into 2020-21 to around $57.2 million) and the ﬁnancial year. proportion of the work programme completed every year has increased It will also require ongoing management from 59% to 70%. of the timing of projects in order to deliver an ambitious capital programme. Even so, we face an ongoing challenge to complete our increasingly ambitious

21 Council and Māori working in partnership

Council is committed to developing stronger relationships with tangata whenua at governance and operational levels. While progress has been made, more work is needed in some areas. Te Kārearea, our strategic partnership forum with Māori, is made up of hapū representatives of the major hapū groupings from within our District. Together, these representatives advocate for hapū of Whangārei. They meet in their own forum, named Te Huinga, to discuss common issues that are then brought to Te Kārearea. The purpose of this partnership is to build the relationship between Council and Whangārei hapū and to develop stronger partnerships over time. Te Kārearea Strategic Partnership Forum will meet from June 2020 to September 2020 in order to bed in a new way of working, and test Terms of Reference. Terms of Reference will be reviewed and reported back to Council, along with the procedure for establishment of a Standing Committee, in September 2020. Te Kārearea has the following vision and mission: Te pae tawhiti/vision He whenua Rangatira – Whangārei, a District of prosperity, well-being and empowered communities. Te kaupapa/mission Ka tutuki te Kawanatanga a-rohe, ka puawai hoki te kotahitanga me ona tini kaupapa – Local Government that works through effective partnerships and provides practical solutions. Charter Te Kārearea is underpinned by the following Charter: Vision: To have the best Maori/Council relationship in Aoteraroa Values: Bold, brave, respect, equitable, unified Intent: Effective by performance through partnership Purpose: To work together Whangarei District’s iwi and hapū are in a pre-settlement phase for Treaty of Waitangi claims. As these settlements occur, Council will continue to incorporate these outcomes into our partnership work with tangata whenua. Council will continue to meet all its legal obligations to Māori under legislation, including the Resource Management Act and Local Government Act.

22 Council activities

23 Introduction Council’s work is grouped into 10 key activities and support services in this Annual Plan.

GROUP OF ACTIVITIES ACTIVITY The information provided about each of the 10 activities includes: 1. Transportation Transportation • purpose and strategic 2. Water Water ﬁt across the organisation 3. Solid waste Solid waste • how it relates to the 4. Wastewater Wastewater Community Outcomes • the money we have 5. Stormwater Stormwater budgeted for the Hikurangi Flood Protection activity 6. Flood protection Scheme • Levels of Service (what 7. Community facilities Parks and recreation Council will provide and services and to what extent) Libraries • performance measures and targets for 20-21 Community property (how you will be able Community development to tell whether we have done what we said we Venues and events would do) • the capital projects Customer services associated with each 8. Governance and Democracy and activity. strategy assurance The performance Strategy measures and targets will be used to report 9. Planning and District planning Council’s achievements regulatory services back to the community in Resource consents the Annual Report.

Building control

Health and bylaws

10. Support services Support services

24 Prospective summary funding impact statement

LTP Year 2 Annual LTP Year 3 Variance 2019-20 Plan 2020-21 $000 $000 2020-21 $000 $000 Sources of Operating Funding 59,471 General rates, uniform annual general 60,878 62,613 (1,735) charges, rates penalties 42,121 Targeted rates 42,906 43,460 (554) 6,691 Subsidies and grants for operating purposes 6,415 6,901 (486) 14,863 Fees and charges 12,953 15,635 (2,682) 1,598 Interest and dividends from investments 1,216 1,707 (491) 8,673 Local authorities fuel tax, fines, 7,125 8,730 (1,605) infringement fees and other receipts 133,416 Total Operating Funding 131,493 139,045 (7,552) Applications of Operating Funding 97,110 Payments to staff and suppliers 95,568 95,586 (18) 7,345 Finance Costs 7,687 8,690 (1,003) - Other operating funding applications - - - 104,455 Total Applications of Operating Funding 103,255 104,276 (1,021) 28,961 Surplus / (Deficit) of Operating Funding 28,238 34,769 (6,531) Sources of Capital Funding 18,848 Subsidies and grants for capital expenditure 15,317 13,289 2,028 4,794 Development and financial contributions 2,990 4,952 (1,962) 34,623 Increase / (decrease) in debt 22,000 32,440 (10,440) - Gross proceeds from sale of assets - - - - Other dedicated capital funding - - - - Lump sum contributions - - - 58,264 Total Sources of Capital Funding 40,307 50,681 (10,374) Applications of Capital Funding Capital expenditure 12,951 to meet additional demand 11,439 9,189 2,250 43,331 to improve levels of service 32,039 35,728 (3,689) 35,882 to replace existing assets 45,769 37,173 8,596 (4,938) Increase / (decrease) in reserves (20,702) 3,359 (24,061) - Increase / (decrease) of investments - - - 87,226 Total Applications of Capital Funding 68,545 85,449 (16,904) (28,961) Surplus / (Deficit) of Capital Funding (28,238) (34,769) 6,531 - Funding Balance - - -

25 1. Transportation

Purpose and strategic fit Potential negative effects Easy movement of people and goods Transportation contributes to several is critical to a thriving District. The negative environmental effects way we move supports economic including, but not limited to, water transactions, growth and development, quality, air quality, noise and safety social cohesion, health and the day-to related issues. To mitigate these day running of our communities. It is effects, we make sure our work one of the most important functions we meets environmental standards and, provide. where appropriate, resource consent Strategically, as a core service it is conditions, to ensure that negative important that our transport network is impacts on the environment are efficient and provides choice. In certain avoided, remedied or appropriately parts of the network, pedestrians and mitigated. cyclists are the priority while as our District grows, public transport will become more important. An integrated, safe, responsive, and sustainable land transport system is a fundamental requirement of every district council under the Local Government Act 2002. We are the road- controlling authority for our District and we are responsible for planning, creating, operating and maintaining all roads (except state highways) in a financially responsible manner.

26 Contribution to Community Outcomes

Eﬃcient and resilient core services

Provide a transportation network that enables a range of transport options to facilitate easy and safe travel around our District. Transportation also provides safe and connected walking and cycling opportunities. Road, footpath and cycle networks are managed and planned in a way that it aligns with our District’s growth and are supplied in an eﬃcient way.

Caring for the environment

Street design and landscaping can contribute to our natural environment, particularly in urban areas. Future transport infrastructure will recognise the need to adapt to effects of climate change. Walking and cycling can help to protect our environment. They also have significant health and wellbeing benefits.

Positive about the future

Our transport network is of strategic importance to our future prosperity. Our roads are used by residents to get to and from work, by business to transport goods and by visitors to travel around our District.

Proud to be local

Maintenance of our local streets helps our District look neat and tidy. The quality design of our streets can make our District safe and more attractive.

High contribution Medium contribution

27 Levels of Service Mandatory performance measures 1.1 Our District’s roading network will be maintained in a satisfactory condition and in accordance with national safety and engineering standards.

Performance measure 2017-18 2018-19 2019-20 2020-21 2021-28 target target target target target The change from the previous ﬁnancial 0 0 0 0 0 year in the number of fatalities and serious injury crashes on local road network, expressed as a number. Residents’ satisfaction with the roading ≥61% ≥61% ≥61% ≥61% ≥61% network. The average quality of a ride on a ≥87% ≥87% ≥87% ≥87% ≥87% sealed local road network, measured by smooth travel exposure. The percentage of the sealed local ≥8% ≥8% ≥8% ≥8% ≥8% road network that is resurfaced. The percentage of the sealed local ≥1.2 % ≥0.6% ≥0.6% ≥0.6% ≥0.6% road network that is rehabilitated. The percentage of customer service ≥95% ≥95% ≥95% ≥95% ≥95% requests relating to roads and footpaths to which the territorial authority responds within the time frame speciﬁed in the LTP. Note: this is not stated in our District Plan.

1.2 We will support alternative transport methods.

Performance measure 2017-18 2018-19 2019-20 2020-21 2021-28 target target target target target The percentage of footpaths within a ≥80% ≥80% ≥80% ≥80% ≥80% territorial authority district that fall in fair or in fair or in fair or in fair or in fair or within the level of service or service better better better better better standard for the condition of footpaths condition condition condition condition condition that is set out in the territorial authority's relevant document (such as its annual plan, activity management plan, asset management plan, annual works programme or LTP).

28 1.3 Travel times in and around the network will be predictable and disruptions to the network will be well managed and communicated.

Performance measure 2017-18 2018-19 2019-20 2020-21 2021-28 target target target target target Residents’ satisfaction with the way ≥70% ≥70% ≥70% ≥70% ≥70% our District is managing its morning and evening traﬃc ﬂows.

29 Transportation projects

Programme Project LTP Net timing New/ Annual 2020-21 diﬀerences (savings) Plan $000 $000 $000 2020-21 $000 Amenity Lighting Amenity Lighting 97 - - 97 Bus Shelters Bus Shelters 96 - - 96 Bus Terminal Bus Terminal 320 (320) - - Development/ Relocation Coastal Protection Coastal Protection 86 - - 86 Structures - Roading Cycleways Cycleways - Subsidised - 100 - 100 Cycleways - Cycleways - - 31 - 31 Unsubsidised Unsubsidised Programmed Work Footpaths Footpaths Renewals 390 - - 390 New Footpaths 426 - - 426 Land for Roads Land for Roads - - - - Minor Minor Improvements to 5,465 4,325 - 9,790 Improvements to Network Roading Network Other Roading Southern Entrance 687 (687) - - Projects Intersection Improvement Parking Parking Renewals 237 - - 237 Roading Drainage Drainage Renewals 1,141 135 - 1,276 Roading Subdivision Subdivision Works 53 - - 53 Works Contribution Contribution Seal Extensions Seal Extensions - 1,065 - - 1,065 Unsubsidised Seal Extensions - House - 2,734 - 2,734 Frontage Sealing Sealed Road Sealed Road Pavement 4,296 2,228 - 6,524 Pavement Rehabilitation Rehabilitation Sealed Road Sealed Road 4,516 448 - 4,964 Resurfacing Resurfacing Sense of Place Community Led 297 - - 297 Development

30 Programme Project LTP Net timing New/ Annual 2020-21 differences (savings) Plan $000 $000 $000 2020-21 $000 Streetlights LED Streetlight - 330 - 330 Upgrades Structures Structures Component 1,076 579 - 1,655 Component Replacement Replacement Traffic Signs & Traffic Sign & Signal 915 136 - 1,051 Signals Renewals Transportation Transport Planning 213 - - 213 Planning Studies & Studies & Strategies Strategies Unsealed Road Unsealed Road 864 - - 864 Metalling Metalling Transportation Total 22,239 10,038 - 32,278

31 2. Water

Purpose and strategic fit Potential negative effects We provide fresh, clean, healthy water We provide an adequate supply of to our District. Our water supply safe, clean, potable water as needed provides water for households to drink by the community, with the key driver and use and also plays an important being health and wellbeing. Water is role in many industrial, commercial and also provided for fire-fighting purposes some agricultural businesses. Water is within reticulated areas and is available also provided to fight fires within the to those with alternate supplies during spread of our network. The water is times of drought via water tankers. delivered via a network of treatment Various statutes set out Council’s plants, reservoirs, pump stations and responsibilities for water supply. These pipelines. include the Local Government Act Strategically, the focus for the future 2002, the Resource Management Act is on the quality and resilience of 1991 and the Health Act 1956. this service. We provide water that Provision of water can contribute to meets necessary Ministry of Health various negative environmental effects standards. We also ensure our water through the abstraction of water from supply is resilient to change through bores and dams. However, water use water efficiency programmes and is managed in line with environmental infrastructure upgrades. standards. We also invest in new technology and methods to reduce some of these environmental impacts.

32 Contribution to Community Outcomes

Eﬃcient and resilient core services

Providing water is a core service. It supports our communities and our commercial, industrial and agricultural activities. Water is supplied in a planned, managed and eﬃcient way to ensure it aligns with our District’s growth.

Caring for the environment

Management of our water supply can support a clean and healthy environment through initiatives such as water conservation.

Positive about the future

New technology will be used to monitor the quality of our drinking water. Providing water to appropriate locations across urban and rural areas of our District enables productivity.

High contribution Medium contribution

33 Levels of Service Mandatory performance measures 2.1 We provide safe, high-quality drinking water to all our customers.

Performance measure 2017-18 2018-19 2019-20 2020-21 2021-28 target target target target target Whangarei District’s four water supply New4 4 4 4 areas have approved Water Safety Plans as determined by a Ministry of Health drinking water assessor. Compliance with the 2005 New 100% 100% 100% 100% 100% Zealand Drinking Water Standards’ requirements for bacterial monitoring. Customer’s overall satisfaction with New ≥95% ≥95% ≥95% ≥95% the water quality provided by Council as measured in the annual Customer Satisfaction Survey (excludes ‘don’t knows’). The extent to which the local Fully Fully Fully Fully Fully authority’s drinking water supply complies complies complies complies complies complies with: (a) part 4 of the drinking-water standards (bacteria compliance criteria) and (b) part 5 of the drinking-water standards (protozoal compliance criteria). The total number of complaints ≤17 ≤17 ≤17 ≤17 ≤17 received by the local authority about any of the following: (a) drinking water clarity (b) drinking water taste (c) drinking water odour (d) drinking water pressure or ﬂow (e) continuity of supply; and (f) the LA's response to any of these issues expressed per 1000 connections to the LA’s networked reticulation system.

34 2.1 We provide safe, high-quality drinking water to all our customers.

Performance measure 2017-18 2018-19 2019-20 2020-21 2021-28 target target target target target Where the local authority (LA) attends a callout in response to a fault or unplanned interruption to its networked reticulation system, the following median response times measured: (a) attendance for urgent callouts: a) ≤ less a) ≤ less a) ≤ less a) ≤ less a) ≤ less from the time the LA received than 1hr than 1hr than 1hr than 1hr than 1hr notification to the time service personnel reach the site (b) resolution of urgent callouts: from b) ≤ less b) ≤ less b) ≤ less b) ≤ less b) ≤ less the time the LA received notification to than than than than than the time that service personnel confirm 4hrs 4hrs 4hrs 4hrs 4hrs resolution of the fault or interruption

(c) attendance for non-urgent callouts: c) ≤ less c) ≤ less c) ≤ less c) ≤ less c) ≤ less from the time that the LA receives than than than than than notiﬁcation to the time that service 12hrs 12hrs 12hrs 12hrs 12hrs personnel reach the site; and

(d) resolution of non-urgent callouts: d) ≤ less d) ≤ less d) ≤ less d) ≤ less d) ≤ less from the time that the LA receives than 24 than 24 than 24 than 24 than 24 notiﬁcation to the time that service hrs hrs hrs hrs hrs personnel conﬁrm resolution of the fault or interruption.

2.2 The water supplied is continuous and is adequate for customers’ use.

Performance measure 2017-18 2018-19 2019-20 2020-21 2021-28 target target target target target Customer’s satisfaction with the water New ≥95% ≥95% ≥95% ≥95% ﬂow and pressure provided by Council as measured in the annual Customer Satisfaction Survey.

35 2.3 In times of emergency there is adequate water supply available.

Performance measure 2017-18 2018-19 2019-20 2020-21 2021-28 target target target target target Whangārei City Water Supply Area can New ≥81% ≥79% ≥79% ≥79% meet a one in 50-year drought (based on 2009-10 event data adjusted for growth and losses). Water restrictions imposed due to New0 0 0 0 drought.

2.4 We manage the water supply system in a sustainable way that also caters for growth.

Performance measure 2017-18 2018-19 2019-20 2020-21 2021-28 target target target target target Residents in our District annually New ≥65% ≥65% ≥65% ≥65% adopt water conservation techniques in their homes and/or businesses (as measured in the annual Customer Satisfaction Survey). Water restrictions imposed due to New0 0 0 0 drought. The percentage of real water loss ≤ Less ≤ Less ≤ Less ≤ Less ≤ Less from the local authority's networked than than than than than reticulation system (including a 25% 25% 25% 25% 25% description of the methodology used to calculate this). WaterNZ Benchloss The average consumption of drinking ≤ Less ≤ Less ≤ Less ≤ Less ≤ Less water per day per resident within the than 500 than 500 than 500 than 500 than 500 territorial authority district. litres litres litres litres litres

36 Water projects

Programme Project LTP Net timing New/ Annual 2020-21 diﬀerences (savings) Plan $000 $000 $000 2020-21 $000 Water Meters Water Meter Renewals 373 - - 373 Water Reservoirs Reservoir Rehabilitation 107 - - 107 - Programmed Work Three Mile Bush 213 (144) - 69 Reservoir Additional Capacity Waipu Reservoir 107 (107) - - Additional Capacity Kamo Reservoir 213 (100) - 113 Additional Capacity Water Reticulation Reticulation - 258 500 - 758 Programmed Work Minor Projects - 320 - - 320 Emergency Works Fairway Drive Pump 533 - - 533 Station Upgrade Water Treatment Water Treatment 533 - - 533 Plants Plant & Equipment Replacement Treatment Plant 75 (21) - 53 Upgrades SCADA Upgrade 500 249 - 749 Whau Valley Dam Whau Valley Dam 320 (320) - - Improvements Chimney Drain Dam Safety Review 43 (43) - - Whau Valley Water Whau Valley New Water 11,267 1,355 - 12,622 Treatment Plant Treatment Plant Water Total 14,858 1,370 - 16,229

37 3. Solid waste

Purpose and strategic fit Contribution to We collect, process, dispose of and Community Outcomes recycle solid waste in our District. This is essential for keeping our District Efficient and resilient core attractive and vibrant. This core service services also supports our District’s economic Solid waste is managed and planned for activities supporting our growth and in a way that ensures it aligns with our development. District’s growth and is supplied in an Our aim is to do this in a way that, over efficient way. time, will reduce the amount of waste Caring for the we are required to process. Waste environment management is required by several Waste minimisation, recycling and pieces of legislation, including the waste collection limits potential adverse Waste Minimisation Act (WMA) 2008, effects on our environment. the New Zealand Waste Strategy 2010 and the Local Government Act 2002. Proud to be local Potential negative effects A clean environment across our District Waste can have negative effects on air, is vital to our wellbeing, as well as our land and water. To limit these effects, attractiveness to visitors and investors. we comply with consents relating to the operation of our transfer station network. The volumes of rubbish High contribution disposed of are minimised through Medium contribution effective recycling. If not appropriately collected and disposed of, solid waste can have significant negative effects on public health. To reduce the effects of this we have a reliable collection service and transfer station network throughout our District.

38 Levels of Service Mandatory performance measures 3.1 Council will provide kerbside refuse and recycling collection services to all properties in our District and transfer stations will be operated throughout our District.

Performance measure 2017-18 2018-19 2019-20 2020-21 2021-28 target target target target target Customer satisfaction with solid waste ≥85% ≥85% ≥85% ≥85% ≥85% collection and recycling services and transfer stations (excluding ‘don’t knows’).

3.2 Council will foster waste minimisation by supporting recycling and waste reduction practices so that a continued reduction in refuse sent to landﬁll occurs.

Performance measure 2017-18 2018-19 2019-20 2020-21 2021-28 target target target target target To reduce waste disposed of to landﬁll New - - <500 <500 to below 500 kg per person by 2020. a To recycle at least 35% of waste New ≥35% ≥35% ≥35% ≥35% collected at the roadside from households. Council will recycle, compost or reuse New - - ≥50% ≥50% at least 50% of materials at transfer stations by 2020. a

3.3 Council will provide and empty public rubbish bins and undertake litter control throughout public places in our District.

Performance measure 2017-18 2018-19 2019-20 2020-21 2021-28 target target target target target Residents' satisfaction with litter ≥75% ≥75% ≥75% ≥75% ≥75% control. Notes a These performance measures relate to targets contained in the Whangarei District Waste Management and Minimisation Plan. These targets were set for 2020 and there will be no interim targets set.

39 Solid waste projects

Programme Project LTP Net timing New/ Annual 2020-21 diﬀerences (savings) Plan $000 $000 $000 2020-21 $000 Transfer Stations Transfer Station 53 (53) - - Upgrades Solid Waste Total 53 (53) - -

40 4. Wastewater

Purpose and strategic fit Contribution to Wastewater management is a core Community Outcomes service that keeps our communities safe, healthy and clean. This is essential Efficient and resilient to being a vibrant, attractive and core services thriving District. The management of wastewater is a core Our population produces a large amount service. It supports our communities of wastewater every year. Our job is to and our commercial, industrial and develop and manage systems to collect agricultural activities. this wastewater, and treat and dispose Wastewater is managed and planned of it in a way that meets a range of legal in a way that ensures it aligns with our standards. This protects the health and District’s growth and is supplied in an wellbeing of our communities and the efficient way. environment. Caring for the Our wastewater network includes environment wastewater systems and treatment Managing wastewater to agreed plants, and processes wastewater from standards, with discharges from over 23,000 connections across our wastewater treatment plants having no District. We also provide a network of detrimental environmental impact. public toilets that contribute to the wellbeing of visitors, as well as the local Positive about the future community. Potential negative effects New technology will be used at our wastewater treatment plants, including Sewage discharges to air, land and waste-to-energy processes. water affect the environment and public The management of wastewater in health. We have invested in targeted appropriate locations across urban programmes to prevent and mitigate the and rural areas of our District enables effects of treated and untreated sewage productivity. discharges. We have also implemented an ISO 9001 certified system for effective management of the wastewater High contribution network. Compliance with resource Medium contribution consent conditions ensures adverse effects to the environment are avoided, mitigated or remedied.

41 Levels of Service Mandatory performance measures 4.1 In deﬁned areas, Council will collect, treat and dispose of wastewater through a reliable wastewater network which is managed to ensure blockages, breaks or spillages are kept to a minimum.

Performance measure 2017-18 2018-19 2019-20 2020-21 2021-28 target Target target target target Compliance with Territorial Authority 0 0 0 0 0 (TA) resource consents for discharge from its sewerage system measured by the number of: (a) abatement notices (b) infringement notices (c) enforcement orders and (d) convictions received by the territorial authority in relation those resource consents. The number of dry weather sewerage ≤1.35 ≤1.35 ≤1.35 ≤1.35 ≤1.35 overﬂows from the TA’s sewerage system, expressed per 1000 sewerage connections to that sewerage system. Residents' satisfaction with sewerage ≥70% ≥70% ≥70% ≥70% ≥70% reticulation, treatment and disposal services. The total number of complaints ≤20 ≤20 ≤20 ≤20 ≤20 received by the TA about any of the following: (a) sewage odour (b) sewerage system faults (c) sewerage system blockages; and (d) the TA’s response to issues with its sewerage system expressed per 1000 connections to the TA’s sewerage system. Where the TA attends to sewerage overﬂows resulting from a blockage or other fault in the TA's sewerage system, the following median response times measured:

42 4.1 In deﬁned areas, Council will collect, treat and dispose of wastewater through a reliable wastewater network which is managed to ensure blockages, breaks or spillages are kept to a minimum.

Performance measure 2017-18 2018-19 2019-20 2020-21 2021-28 target Target target target target (a) attendance time: from the time that ≤1 hr ≤1 hr ≤1 hr ≤1 hr ≤1 hr the TA receives notification to the time that service personnel reach the site; and (b) resolution time: from the time ≤7 hr ≤7 hr ≤7 hr ≤7 hr ≤7 hr that the TA receives notification to the time that service personnel confirm resolution of the blockage or other fault.

4.2 Council will provide well maintained and accessible public toilets in high use areas.

Performance measure 2017-18 2018-19 2019-20 2020-21 2021-28 target target target target target Residents’ satisfaction with public ≥75% ≥75% ≥75% ≥75% ≥75% toilets.

43 Wastewater projects

Programme Project LTP Net timing New/ Annual 2020-21 diﬀerences (savings) Plan $000 $000 $000 2020-21 $000 Laboratory Laboratory Equipment 21 29 - 50 Renewals & Upgrades Public Toilets Public Toilets 255 90 - 345 Wastewater Asset Wastewater Assessment 45 - - 45 Management Wastewater Sewer Network 3,782 (2,806) - 976 Network Upgrades Sewer Network Renewal 5,833 (4,250) - 1,583 Wastewater Pump Wastewater Pump 427 (70) - 357 Stations Station Renewals Wastewater Wastewater Treatment 4,249 (3,480) - 770 Treatment Plants Plant Upgrades Wastewater Treatment 1,527 (806) - 721 Plant Renewals Wastewater 43 (35) - 8 Reticulation Upgrade Wastewater Total 16,182 (11,328) - 4,854

44 5. Stormwater

Purpose and strategic fit Catchment management plans and environmental engineering standards Our stormwater network prevents identify issues and specify treatment, flooding to properties and roads. How respectively, in relation to the we manage stormwater can contribute stormwater activities. significantly to vibrant and thriving communities through initiatives such as Contribution to the Blue/Green Network Strategy. Community Outcomes Stormwater management is a core service and needs to align with the Efficient and resilient following legislative requirements: core services The management of stormwater is a core • assess, from a public health service. It supports our communities as perspective, the adequacy of well as enabling commercial, industrial stormwater services available to and agricultural activities. communities – this includes the actual or potential consequences of Stormwater is managed and planned discharges in a way that ensures it aligns with our District’s growth and is supplied in an • preparing catchment management efficient way. plans in accordance with the Northland Regional Plan Caring for the environment • adhering to the freshwater quality objectives of the Northland Regional Investment in infrastructure and Plan. natural systems seeks to minimise environmental effects of stormwater Potential negative effects run-off into our waterways. Inadequate stormwater services have Stormwater water management through the potential to increase flood damage catchment management plans, resource to property, incurring costs and consents and engineering standards elevated insurance premiums. This can mitigate and manage potential adverse be reduced by identification of flood- environmental effects. susceptible land through catchment Positive about the future management and District Plans. Insufficient treatment of stormwater The management of stormwater in has the potential to adversely affect our appropriate locations across urban environment. This can be addressed and rural areas of our District enables by resource consents for stormwater productivity. discharges being monitored for High contribution compliance against consent conditions. Medium contribution 45 Levels of Service Mandatory performance measures 5.1 Council will manage the stormwater network to minimise flood risks within defined service areas.

Performance measure 2017-18 2018-19 2019-20 2020-21 2021-28 target target target target target Compliance with the territorial 0 0 0 0 0 authority’s (TA) resource consents for discharge from its stormwater system, measured by the number of: (a) abatement notices (b) infringement notices (c) enforcement orders; and (d) convictions received by the TA in relation to those resource consents. Residents' satisfaction with stormwater ≥70% ≥70% ≥70% ≥70% ≥70% drainage service. The number of complaints received ≤16 ≤16 ≤16 ≤16 ≤16 by a TA about the performance of its stormwater system, expressed per 1000 properties connected to the TA’s stormwater system.c (a) The number of ﬂooding eventsa that 0 0 0 0 0 occur in a TA district; and

a (b) for each flooding event the 0 0 0 0 0 number of habitable floors affectedb expressed per 1000 properties connected to the TA’s stormwater system. The median response time to attend ≤1 hr ≤1 hr ≤1 hr ≤1 hr ≤1 hr a flooding event, measured from the time that the TA receives notification to the time service personnel reach the site.a Notes a A flooding event means an overflow of stormwater from a territorial authority’s stormwater system that enters a habitable floor (Department of Internal Affairs (DIA), 2014). It does not therefore apply outside declared stormwater service areas, or to non-habitable structures such as garages and sheds, or to flooding of yards. b While all flooding events will be recorded as per DIA requirements, the target is immunity from storm events with an annual exceedance probability (AEP) of more than 2% (1 in 50 year average recurrence interval). This is consistent with District Plan rules for minimum floor level. c This target expresses per 1000 properties rather than a total, which would have resulted in a target of 15.7 per 1000 properties. In the 2017-18 Annual Plan this was expressed as per 400 properties across the District. 46 Stormwater projects

Programme Project LTP Net timing New/ Annual 2020-21 diﬀerences (savings) Plan $000 $000 $000 2020-21 $000 Stormwater Asset Stormwater Catchment 810 (721) - 88 Management Management Plans & Assessments Stormwater Stormwater Upgrades 61 - - 61 Improvements Stormwater Renewals 2,654 (1,537) - 1,117 Blue/Green Network 160 - - 160 Stormwater Total 3,684 (2,258) - 1,426

47 6. Flood protection

Purpose and strategic fit Potential negative effects The Hikurangi Flood Protection Scheme The scheme has little riparian cover helps minimise flooding across the and has the potential to increase 5,600 hectares of farmland within the sedimentation and nutrient loadings Hikurangi Swamp area. into waterways. To lessen this, we The aim of the scheme is to protect the have a Scheme Riparian and Oxbow farming productivity of land within the Management Plan detailing remedial swamp area. This is highly productive works to restore habitat and riparian agricultural land that generates margins. considerable economic benefit to the The scheme impacts on the native region. fish population, specifically eels, by We are responsible for managing, presenting barriers to upstream and operating and maintaining the Hikurangi downstream migration and causing Scheme to ensure the required fish fatalities via the pumps. Eels have environmental, cultural and economic important cultural value to local iwi. results are achieved. The scheme is To address this, we have prepared a funded by targeted rates from properties Fishery Management Plan, which has within the area. seen the installation of fish passage floodgates and spat ropes. We are also proposing a future plan to upgrade pumps to fish-friendly pumps. Council is actively engaged with local iwi and other stakeholders.

48 Contribution to Community Outcomes

Eﬃcient and resilient core services Flood protection provides resilience for agricultural land in Hikurangi. Caring for the environment Investment in ﬂood protection assists in the improvements in water quality within the Kaipara Harbour catchment.

High contribution Medium contribution

Levels of Service Mandatory performance measures 6.1 Council will provide a reliable and sustainable ﬂood protection scheme, which is managed to mitigate ﬂooding within the Hikurangi Swamp Scheme area to an acceptable level.

Performance measure 2017-18 2018-19 2019-20 2020-21 2021-28 target target target target target The major ﬂood protection and control Yes Yes Yes Yes Yes works that are maintained, repaired and renewed to the key standards deﬁned in the local authority’s relevant planning documents (such as its activity management plan, asset management plan, annual works programme or long term plan). The number of infringement or 0 0 0 0 0 abatement notices issued by Northland Regional Council in relation to the scheme consent.

49 Flood Protection projects

Programme Project LTP Net timing New/ Annual 2020-21 diﬀerences (savings) Plan $000 $000 $000 2020-21 $000 Flood Protection Total - - - -

50 7. Community facilities and services

Community facilities and services are a key part of an attractive, vibrant and thriving District. This includes our parks and recreation spaces, as well as our community buildings. It also includes our services that support our communities through community development, libraries, and venues and events – a key way we add activity to our public spaces. Meanwhile, our customer services team represents our first point of contact with our community. This profile also includes Civil Defence. Civil Defence provides emergency management services for our District. A comprehensive emergency management organisation is in place and is focused around the four phases of the emergency management continuum known as the four R’s (reduction, readiness, response and recovery). The intention is to encourage greater self-reliance in the community by developing and maintaining Community Response Plans for prompt and effective recovery in the event of a disaster.

51 Parks and recreation

Purpose and strategic fit Potential negative effects We provide parks and reserves for sport The under-supply of public space could and recreation, landscapes and green be harmful to the wider community, places. We administer 20,720 hectares particularly in urban areas. To address of land as open space, with an asset this, Council will develop an open space value of $46.9 million. This includes: strategy to guide the provision of public • sportsfields and playgrounds space. • natural areas such as wetlands and mangrove estuaries, coastal areas and esplanade reserves • city parks and street gardens • cemeteries • former quarries and landfills • forest remnants, pine forests and regenerating bush • areas reserved for water supply, waste treatment and other public utilities. Our objective is to create, operate, maintain, renew and dispose of assets to provide for existing and future customers in the most cost-effective manner. The quality of these spaces and the activities that take place on them contribute to the attractiveness and vibrancy of our District. Our parks and associated facilities are significant assets which are used and appreciated by residents and visitors. The Reserves Act 1977 requires land administered by Council to be managed in accordance with the Act.

52 Contribution to Community Outcomes

Eﬃcient and resilient core services

The adequate provision of open space is needed to support the development of an attractive, vibrant and thriving community. Opportunities for walking and cycling are provided through public spaces.

Caring for the environment

Our Parks team supports community initiatives to keep our District clean, as well as managing weeds and pests. Access to the coast is protected through reserves managed by Parks. Design and landscaping in our public spaces and streets enables nature to thrive.

Positive about the future

Open space is distributed across our District and contributes to a fair urban and rural balance. New technology is improving service delivery, including turf maintenance.

Proud to be local

Maintenance of our parks and public spaces ensures our District looks neat and tidy. Our public spaces and parks are the venue for many community events and activities. Our parks and sports grounds and walking tracks provide opportunities for people to be active and healthy.

High contribution Medium contribution

53 Levels of Service

7.1 Council will provide and maintain outdoor sporting facilities to support and promote active recreation in the community through participation in both organised and informal sporting activities.

Performance measure 2017-18 2018-19 2019-20 2020-21 2021-28 target target target target target Sports parks will be provided to meet ≥177hrs ≥187 hrs ≥196 hrs ≥201 hrs ≥199 hrs the community's needs. *

7.2 Council will provide and maintain a range of reserves, including built facilities, to meet the needs of the community as well as protecting and enhancing the natural environment.

Performance measure 2017-18 2018-19 2019-20 2020-21 2021-28 target target target target target Average satisfaction rating of sports ≥82% ≥84% ≥84% ≥85% ≥86% codes with sports parks. Residents’ satisfaction with ≥82% ≥90% ≥90% ≥90% ≥90% neighbourhood, civic space, cultural heritage, public gardens and recreational and ecological linkages to parks.

7.3 Council will convert or upgrade identiﬁed existing open spaces to provide a wider range of high quality recreational and leisure opportunities within our District for our community and visitors.

Performance measure 2017-18 2018-19 2019-20 2020-21 2021-28 target target target target target Hectares of open space land 0.5ha 0.5 ha 0.5 ha 0.5 ha 0.5 ha transformed does not drop below. ** Residents’ perception that Council ≥70% ≥70% ≥70% ≥70% ≥70% is making suﬃcient investment in developing a strong sense of place for our District and its communities.

54 7.4 Council will provide and maintain cemeteries and a crematorium in a satisfactory manner.

Performance measure 2017-18 2018-19 2019-20 2020-21 2021-28 target target target target target Residents' satisfaction with ≥90% ≥90% ≥90% ≥90% ≥90% cemeteries.

* This measure is expressed as the number of hours available at sports parks per 1000 members of our District population during the winter season. ** This measure relates to parks and reserve lands that have been developed with amenities that promote increased public use.

55 Libraries

Purpose and strategic fit Contribution to Libraries provide our community with Community Outcomes opportunities for life-long learning, access to information, leisure and Positive about the future reading. This contributes to a vibrant and thriving District. Our libraries embrace technology Public libraries provide free and open to improve the customer’s access to access to knowledge and services. information through initiatives such as They are a neutral, respected gateway providing internet access, e-books and to information and a safe place that self-service checkouts. offers equal access for all community members. Proud to be local The Local Government Act 2002 Our libraries are key community facilities requires that, where such a service is providing equitable access to life-long provided, residents can join the library learning as well as fulfilling leisure and free of charge. recreational needs. Potential negative effects No potential negative effects have been High contribution identified for libraries. Medium contribution

Levels of Service

7.5 Council will provide library services to our District via the central library, the mobile and branch libraries.

Performance measure 2017-18 2018-19 2019-20 2020-21 2021-28 target target target target target Percentage of population who have ≥60% ≥60% ≥60% ≥60% ≥60% used a library in the past year. Residents' satisfaction with the ≥95% ≥95% ≥95% ≥95% ≥95% resources (books, magazines etc.) the library service provides.

56 Community property

Purpose and strategic fit Contribution to Council is committed to providing Community Outcomes appropriate pensioner housing and community buildings for our District to Positive about the future use. Our property service helps to build thriving and vibrant communities. Our community facilities are located Where community halls are not Council- across our District to ensure there is a owned, operational grants may be fair urban and rural balance. provided to assist in the maintenance of these important community facilities. Proud to be local Potential negative effects Our community facilities ensure activities and facilities are available No potential negative effects have been across our District for people of all identified for community property. abilities, ages and lifestyles. High contribution Medium contribution Levels of Service

7.6 Council will provide rental accommodation that meets the speciﬁc needs of eligible elderly members of the community.

Performance measure 2017-18 2018-19 2019-20 2020-21 2021-28 target target target target target Percentage occupancy rate of ≥98% ≥98% ≥98% ≥98% ≥98% pensioner housing. Pensioner housing residents' ≥80% ≥80% ≥80% ≥82% ≥82% satisfaction with the standard of accommodation.

57 Community development

Purpose and strategic ﬁt Contribution to Council is committed to a community Community Outcomes development framework that aims to Positive about the future work with our communities to ensure they are vibrant and thriving as well Through the Community as cohesive and sustainable. This is Development Framework our achieved through various initiatives communities will be involved across including: both rural and urban parts of our District. • community-led development programmes Proud to be local • grants and community funding Community development enhances and strengthens our • crime reduction and community safety communities to ensure people feel safe programmes such as City Safe and can participate in a range of events • support for our positive aging, and opportunities. disability and youth advisory groups.

It seeks to help strengthen and enhance High contribution our District by ensuring that people feel safe, able to access and participate in Medium contribution activities and are supported in becoming more resilient. Potential negative effects No potential negative effects have been identified for community development

58 Levels of Service

7.7 Council will promote and support community safety.

Performance measure 2017-18 2018-19 2019-20 2020-21 2021-28 target target target target target Percentage of residents within the ≥85% ≥85% ≥85% ≥85% ≥85% community who feel safe within our District.

7.8 Council will support our District's social and cultural wellbeing through its involvement in activities and programmes which support and develop the community.

Performance measure 2017-18 2018-19 2019-20 2020-21 2021-28 target target target target target Percentage of grant applicants who ≥80% ≥80% ≥80% ≥80% ≥80% understand and are satisﬁed with the grants application process.

7.9 Council is actively involved in youth, positive ageing, accessibility and other groups of interest issues.

Performance measure 2017-18 2018-19 2019-20 2020-21 2021-28 target target target target target Percentage of people active in ≥80% ≥80% ≥80% ≥80% ≥80% these sectors who believe Council is achieving strong engagement.

59 Venues and events

Purpose and strategic fit Contribution to We provide venues, while managing Community Outcomes and producing events that contribute Positive about the future to the cultural and social fabric of our community. This contributes to our Venues and events have a District’s attractiveness and vibrancy, District focus, ensuring there is a fair and our District’s economy. balance between rural and urban areas. Potential negative effects Proud to be local Venues and events provide a No potential negative effects have been wide variety of activities ensuring there identified for venues and events. is always something to see and do for both residents and visitors.

High contribution Medium contribution Levels of Service

7.10 Our venues will encourage increased use and high satisfaction levels of those using our facilities.

Performance measure 2017-18 2018-19 2019-20 2020-21 2021-28 target target target target target Number of attendees over all facilities ≥3% ≥3% ≥3% ≥3% ≥3% will increase annually. Satisfaction with the quality of venues ≥80% ≥80% ≥80% ≥80% ≥80% and events.

60 Customer services

Purpose and strategic fit Contribution to Customer services is our interface Community Outcomes with our communities and with our Positive about the future visitors. This is where questions are received and where transactions take Customer services assists the place. Customer services is delivered community to do business and through our contact centres, our various understand our documents, rules and customer service centres across our processes. District and our visitor information Proud to be local centres. Our customer services are a key A satisfactory customer experience point of contact with our community. and access to the right information is This interface enables us to work with essential for our District to thrive. the community to ensure our District is Potential negative effects safe, tidy and attractive. High contribution No potential negative effects have been Medium contribution identified for customer services.

61 Levels of Service

7.11 The community has access to Council’s activities through our service centres and contact centre, which provide a ‘ﬁrst point of contact’ service.

Performance measure 2017-18 2018-19 2019-20 2020-21 2021-28 target target target target target Percentage annual increased levels New ≥1% ≥1% ≥1% ≥1% of satisfaction with service received by ‘ﬁrst point of contact’ customer service. Contact centre service calls answered New ≥85% ≥85% ≥85% ≥85% in under 20 seconds. Wait time for walk-in customers. New No more No more No more No more than 6 than 6 than 6 than 6 mins mins mins mins

7.12 Council will provide, through the Whangārei visitor centres, an accurate booking and information service which inﬂuences more visitors to stay longer and spend more.

Performance measure 2017-18 2018-19 2019-20 2020-21 2021-28 target target target target target Visitors’ satisfaction with the New Very Very Very Very service provided by the information satisfied satisfied satisfied satisfied consultants at our information centres.

62 Community facilities and services projects

Programme Project LTP Net timing New/ Annual 2020-21 diﬀerences (savings) Plan $000 $000 $000 2020-21 $000 Civil Defence & Emergency Management Civil Defence Tsunami Sirens New - 59 - 59 & Emergency Management Tsunami Signage 16 44 - 60 Civil Defence Emergency 5 - - 5 Management New Equipment Civil Defence Emergency 27 9 - 36 Management Equipment Renewals Tsunami Sirens 18 - - 18 Renewals Civil Defence & Emergency Management Total 66 112 - 178 Community Development CCTV Network CCTV Upgrades & 138 48 - 187 Improvements Council-Owned Community 27 219 - 245 Community Buildings Renewals & Buildings Improvements Pensioner Housing Pensioner Housing 667 111 - 778 Renewals & Improvements Sense of Place Community Led 752 (438) - 314 Development Community Development Total 1,584 (60) - 1,524 Library Digital Council Library IT Equipment 107 131 - 237 Library Asset Mobile Bus - 4 - 4 Renewals Replacement Library Renewals 5 - - 5 Library Books Book Purchases 689 49 - 738 Library Total 801 183 - 985

63 Programme Project LTP Net timing New/ Annual 2020-21 diﬀerences (savings) Plan $000 $000 $000 2020-21 $000 Parks and Recreation Cemeteries Cemeteries Renewals 434 51 - 484 Coastal Structures Coastal Structures 2,317 (1,720) - 596 Renewal Coastal Structures Level 63 - - 63 of Service Neighbourhood & Neighbourhood & Public 306 1,175 - 1,481 Public Gardens Gardens Renewals Playgrounds & Playgrounds & 159 284 - 443 Skateparks Skateparks Renewals Sense of Place Public Art 45 32 - 77 Parks Interpretation 45 37 - 81 Information Town Basin - Conversion 1,986 207 - 2,193 of Carpark to Park Pohe Island 1,240 1,466 - 2,706 Development Whangarei City Centre 266 (266) - - Plan Implementation Waterfront Programme - 130 - 130 Sportsﬁelds & Sport & Recreation 579 (472) - 107 Facilities Renewals Sport & Recreation 596 (176) - 420 Growth Tikipunga Soccer Hub 511 (511) - - Walkways and Walkway & Track 360 69 - 428 Tracks Renewals Parks and Recreation Total 8,906 305 - 9,211

64 Programme Project LTP Net timing New/ Annual 2020-21 diﬀerences (savings) Plan $000 $000 $000 2020-21 $000 Venues and Events Forum North Venue Forum North Venue 92 - - 92 Upgrades Forum North Venue 23 - - 23 Renewals Northland Events Sport & Recreation - - 200 200 Centre Renewals NECT - Exterior General - - 580 580 Renewals NECT Light Tower 1,601 1,468 200 3,268 Renewals NECT Field Renewals - - 310 310 NECT Building Renewals 202 - - 202 Venues and Events Total 1,918 1,468 1,290 4,676 Community Facilities and Services Total 13,275 2,008 1,290 16,573

65 8. Governance and strategy

Purpose and strategic fit and marketing our District as a desirable place to visit, work and do business. This includes the democratic functions Fostering meaningful and sustainable of our organisation, which drives robust relationships with iwi, hapū and decision-making through Council and mātāwaka (a term that applies for all committee meetings, supported by Māori who live in our District but who briefings and workshops. Democracy generally whakapapa to an area outside and Assurance functions also include of it) organisations across our District is legal, risk and audit, Council Controlled a crucial function of this group. These Organisation (CCO) coordination, relationships also exist through specific Mayoral support, and coordination programmes of work as well as larger and management of consultation and scale projects such as Treaty of Waitangi engagement activities. settlements. This group also sets the strategic direction. The focus is on how our Potential negative effects District grows and develops through Ineffective strategies or the absence of our District-wide, issue-based or place- strategic direction could lead to adverse based strategies. environmental effects. This is mitigated District development encourages through a review of our growth strategy economic development and investment to ensure it is relevant and based on in our District including managing current information. Council’s commercial property portfolio

Contribution to Community Outcomes Eﬃcient and resilient core services Our strategic planning ensures that core infrastructure is provided to meet the demands of growth in a managed and coordinated way. Caring for the environment Strategic planning ensures our environment is cared for. Positive about the future Democracy functions ensure transparent and robust decision-making. Strategic planning and implementation of key projects allows our city centre to thrive.

High contribution Medium contribution 66 Levels of Service

8.1 Our democratic functions are transparent and meet the legislative requirements.

Performance measure 2017-18 2018-19 2019-20 2020-21 2021-28 target target target target target Responses to requests for information New 100% 100% 100% 100% made under the Local Government Oﬃcial Information Act 1987 and the Privacy Act 1993 are provided within relevant statutory timeframes. Percentage of Council, committee and New 100% 100% 100% 100% hearing agendas that meet relevant legislative timeframes.

8.2 We deliver the requirements of the National Policy Statement on Urban Development Capacity.

Performance measure 2017-18 2018-19 2019-20 2020-21 2021-28 target target target target target Meet the statutory timeframes New 100% 100% 100% 100% and deliverables as set out in the National Policy Statement on Urban Development Capacity.

67 Governance and strategy projects

Programme Project LTP Net timing New/ Annual 2020-21 diﬀerences (savings) Plan $000 $000 $000 2020-21 $000 Commercial Parihaka Transmission - 913 - 913 Property Mast Upgrade New Airport New Airport Evaluation 2,532 (2,162) - 370 Evaluation Governance and Strategy Total 2,532 (1,248) - 1,283

68 9. Planning and regulatory services

We are required to undertake planning, The functions within this activity are monitoring and enforcement activities covered by four separate departments: that meet the requirements of a District Planning, Resource Consents, wide range of legislation, such as the Building Control and Health and Bylaws. Resource Management Act (RMA). This The outcomes of these functions are includes: important in ensuring our District • issuing resource and building consents remains attractive and that our and ensuring they meet required communities thrive. conditions • providing health and liquor licences • monitoring and enforcing bylaws such as animal and noise control, health, liquor and parking • undertaking district planning.

69 District planning

Purpose and strategic fit Contribution to The population of Whangārei is growing, Community Outcomes creating demand on the District’s Efficient and resilient resources. To manage this we develop core services long, medium and short term strategies and policies to help set future directions Our District Plan aligns with core for the resources we manage. Other infrastructure provision to enable aspects support this through land use planned and integrated growth in planning, environmental regulation, appropriate locations. monitoring and reporting. Caring for the Potential negative effects environment Our District Plan is a key regulatory District Plan requirements may inhibit tool to manage the effects on our economic activity if they are overly environment. strict. For this reason our District Plan Provisions in our District Plan ensure is reviewed within statutory timeframes existing public access to coastal areas to reflect the changing nature of our are maintained and new opportunities District. are provided, where appropriate. Positive about the future Our District Plan enables productive land uses and activities across our District. Proud to be local Our District Plan supports urban design outcomes which promote activity, safety and attractive built forms and public spaces. High contribution Medium contribution

70 Levels of Service

9.1 Develop, implement and maintain a District Plan in accordance with the RMA while reﬂecting the desires of the community and issues of sustainability.

Performance measure 2017-18 2018-19 2019-20 2020-21 2021-28 target target target target target Plan changes are researched, 100% 100% 100% 100% 100% proposed, consulted and reported on as required by Council in accordance with the relevant statutory requirements.

71 Resource consents

Purpose and strategic fit Contribution to The RMA directs the processes and Community Outcomes functions of Council, as well as guiding Caring for the the overall outcome of the resource environment consent process, which is to: Resource consents enact our District • promote the sustainable management Plan and RMA to ensure the long-term of natural and physical resources maintenance and protection of • ensure our District remains attractive, significant stands of bush, outstanding vibrant and thriving. landscapes and other natural features This is achieved by processing resource that contribute to a valued environment. consents and associated applications. Positive about the future Potential negative effects The resource consent processes are clear and simple, guided by our Negative environmental effects can District Plan and RMA. result from poor decision making on Proud to be local resource consent applications. This is reduced by the approval of applications Ensuring compliance with being delegated to senior staff District Plan rules and conditions members. Negative economic results of resource consents contributes to can occur if consents are not processed the appearance of our District and a in a timely manner which delays start community’s enjoyment of places and times. External contractors are used to spaces. ensure that statutory timeframes are High contribution met during times of high workloads that Medium contribution cannot be met by staff.

72 Levels of Service

9.2 Council will process resource consent and associated applications within statutory timeframes.

Performance measure 2017-18 2018-19 2019-20 2020-21 2021-28 target target target target target Percentage of non-notiﬁed resource ≥95% ≥95% ≥95% ≥95% ≥95% consent applications processed within statutory timeframes. Percentage of Section 223 and Section ≥95% ≥95% ≥95% ≥95% ≥95% 224 applications for subdivision consents under the RMA within statutory timeframes. 9.3 Council will ensure compliance with land-use consents by monitoring consents issued.

Performance measure 2017-18 2018-19 2019-20 2020-21 2021-28 target target target target target Percentage of land-use consent 100% 100% 100% 100% 100% conditions monitored (note: time frames will be dependent on priorities based on potential environmental risk associated with non-compliance).

73 Building control

Purpose and strategic fit Contribution to This department ensures that buildings Community Outcomes in our District are designed and Caring for the constructed to the agreed standards environment and quality. The healthy design and construction of our homes is important The building control measures around to us and has a direct bearing on our construction methods ensures our residents’ health and perspective on life. environment is protected. We promote the safe and sanitary use Positive about the future of living and public facilities, as well as Building control processes are access for people with disabilities. We clear and simple and enable economic will act against owners of buildings that activity while appropriately protecting pose a risk to the general safety and our communities from unsafe and poor well-being of the public. quality building practices. This department also has responsibilities Proud to be local to establish buildings that may be Building compliance ensures earthquake prone, to ensure building that built structures are safe and owners meet their responsibilities under durable. new legislation. High contribution Potential negative effects Medium contribution Negative effects from not administering the related statutes can range from dangerous and insanitary public use and residential buildings, and non- compliant housing stock. Not issuing building consents and failing to meet the requirements of accreditation may result in a loss of confidence and accreditation to perform these functions as a building consent authority.

74 Levels of Service

9.4 Council will responsively and accurately manage the building consents and compliance process.

Performance measure 2017-18 2018-19 2019-20 2020-21 2021-28 target target target target target Percentage of building consent ≥96% ≥96% ≥96% ≥96% ≥98% applications processed within statutory timeframes. Percentage of inspections completed ≥95% ≥95% ≥95% ≥95% ≥95% within two days.

75 Health and bylaws

Purpose and strategic fit Contribution to This department undertakes monitoring Community Outcomes and enforcement functions across a Caring for the wide cross-section of statutes focussing environment on the protection of community health, safety and amenity. We have two teams: The enforcement of bylaws ensures our environment is protected. • Environmental Health is responsible for registering, monitoring, verifying, Positive about the future inspecting, enforcing and ensuring Regulatory processes are clear general compliance in the food, health and simple and enable economic activity and liquor licensing work areas while appropriately protecting our • Armourguard Security is contracted to communities from nuisance activities. provide services relating to dog and Proud to be local stock control, parking enforcement, Ensuring compliance with our excessive noise control and general bylaws contributes to the appearance bylaw enforcement. of our District and the community’s Potential negative effects enjoyment of places and spaces. Failure to effectively enforce and monitor can lead to significant adverse High contribution environmental, health and nuisance Medium contribution issues across our District. This is mitigated through an appropriate enforcement and monitoring regime.

76 Levels of Service

9.5 Council will ensure responses to complaints relating to parking, excessive noise, dogs, stock and bylaws are carried out within contracted timeframes.

Performance measure 2017-18 2018-19 2019-20 2020-21 2021-28 target target target target target Percentage of complaints responded to ≥85% ≥85% ≥85% ≥85% ≥85% within contracted timeframes.

9.6 Council will protect and promote public health by monitoring those premises, which under the Health Act 1956 require annual registration and inspection.

Performance measure 2017-18 2018-19 2019-20 2020-21 2021-28 target target target target target Percentage of Health Act registered New 100% 100% 100% 100% premises inspected annually. 9.7 Council will promote food safety by registering and verifying those food businesses which the Food Act 2014 speciﬁes that local authorities can register and verify.

Performance measure 2017-18 2018-19 2019-20 2020-21 2021-28 target target target target target Percentage of food businesses veriﬁed New 100% 100% 100% 100% within timeframes as speciﬁed by the Food Act 2014.

9.8 Council will aim to reduce alcohol-related harm by annually inspecting alcohol licensed premises to ensure compliance with the Sale and Supply of Alcohol Act 2012 and licensing conditions in general.

Performance measure 2017-18 2018-19 2019-20 2020-21 2021-28 target target target target target Percentage of alcohol licensed New 100% 100% 100% 100% premises inspected annually.

77 Planning and regulatory services projects

Programme Project LTP Net timing New/ Annual 2020-21 diﬀerences (savings) Plan $000 $000 $000 2020-21 $000 Dog Pound Dog Pound Renewals 1,415 (833) - 582 Planning and Regulatory Services Total 1,415 (833) - 582

78 10. Support services

Support services are focussed on supporting the nine activity areas so that they are best positioned to deliver their various goods and services to the community. The following provides a brief background to the various support activities. Finance services, rates and revenue These departments play a key stewardship role. As well as facilitating the development of an effective financial strategy, we support Council in managing its financial resources on a day-to-day basis, as well as in the long-term. These departments provide services in respect of planning, monitoring and reporting to Council’s financial and business resources and our treasury function actively manages Council’s debt and investment positions for both the short and long-term. We also administer transactional functions including rates, water billing, accounts receivable and receipting, including the efficient administration and maintenance of property records by ensuring the Rating Information Database and other property information systems are kept up to date. Efficient billing processes are undertaken for land and water rates as well as sundry debt and receipting functions for all of Council. Direct debit processing and timely follow up of overdue amounts mean that arrears are kept to a minimum. Our team also supports some Council Controlled Organisations by providing shared financial services to them. People and capability This team works across the business supporting and leading through day-to-day transactions, including recruitment and payroll and longer-term strategic matters such as employee development and change management. The department’s vision is: to have the right people, motivated, engaged and delivering. To enable us to attract the right people into our business, it is important that Council is perceived as a good place to work. Capital projects, planning and development engineering This department provides technical and administrative support to the Infrastructure Group. This includes planning, contract and general administration, asset management systems, databases, project and contract management. ICT This department supports the technical and informational function requirements of Council. From desktop systems to the management of data and documentation, we ensure accurate information is readily available and can be easily stored and accessed. We also ensure that our technology and systems allow Council to comply with its legislative requirements. Council’s website plays a vital role as an interactive service for providing extensive resources for public information, documents and

79 publications, consultations and GIS (Geographic Information System) mapping (including District Plan and hazard overlays). The team also ensures that the underlying structures for the storage and fast retrieval of all corporate data are stable and available 24/7, with the ability to recover vital systems in the event of a disaster or interruption to services. This includes the ongoing development and enhancement of existing software systems to enable Council to meet the growing consumer demands from our District for faster supply and access to information. Communications How we communicate with the community is essential in raising awareness of what Council does and why. It is also key to promoting projects and events that occur across our District. This team drives strategic communications, branding and internal, digital, corporate and daily media communications through various channels to acknowledge our District’s diversity. The department also efficiently produces all written, visual and audio content for digital and print publication – ensuring it is aligned to strategy, brand, legislation, media law and our audience’s needs. Additionally, we support all Council functions in responding to daily media enquiries and various team members also serve as Public Information Managers in any Civil Defence events within our District. Business support Business support provides a raft of support services to Council including WDC premises, office furniture, vehicle fleet, phones, contracts (including tenancy agreements and security) and custodial and mail services. This department also provides centre of expertise and organisational co-ordination for procurement and contract management functions. The team lead knowledge management disciplines including digitisation, management of physical and digital records, and compliance with relevant documentation.

80 Support services projects

Programme Project LTP Net timing New/ Annual 2020-21 diﬀerences (savings) Plan $000 $000 $000 2020-21 $000 Business Business Improvement - 102 - 102 Improvement Projects Civic Buildings Furniture Renewals 21 - 10 31 Information Centre - 126 - 126 Upgrade Civic Centre Civic Centre 12,784 - - 12,784 Council Vehicle Council Vehicle 224 - - 224 Replacements Replacements Digital Council Digitisation of Records - 213 - 213 IT Equipment 639 (300) - 339 Replacement Mobility Technology - 220 (111) - 109 Building Decision Support 101 (101) - - System Development Customer Access - 466 (416) - 50 Online Services Asset Management - 688 - 688 Software Upgrade Asset Management 158 - - 158 Mobility Platform as a Service 405 23 - 428 Electronic LIMs 637 (637) - - Digital District Plan and 511 (410) - 101 Policies Online Upgrade Kete - 236 - 236 SharePoint Digital Platform 162 197 - 359 CiA Upgrade - 935 - 935 Corporate Performance 158 168 - 326 Management IT Equipment New 53 - - 53 Digital Council Minor ICT Projects 85 (2) - 83

81 Programme Project LTP Net timing New/ Annual 2020-21 diﬀerences (savings) Plan $000 $000 $000 2020-21 $000 Forum North Venue Forum North Venue - - 250 250 Renewals Human Resources Oﬃce Furniture - - 30 30 New Theatre/Expo/ New Theatre 3,883 (3,883) - - Conference Support Services Total 20,508 (3,173) 290 17,625

82 Group entities

Council Controlled Organisations Council currently delivers a variety of services through Council Controlled Organisations (CCOs). Council delivers strategic services or initiatives through a CCO where it considers this is a more effective, efficient and financially viable option compared to other means of delivery. The Local Government Act 2002 defines a CCO as either: A company: • in which equity securities carrying 50% or more of the voting rights at a meeting of the shareholders of the company are: – held by one or more local authorities; or – controlled, directly or indirectly, by one or more local authorities; or • in which one or more local authorities have the right, directly or indirectly, to appoint 50% or more of the directors; or An entity in respect of which one or more local authorities have, whether or not jointly with other local authorities or persons: • control, directly or indirectly, of 50% or more of the votes at any meeting of the members or controlling body of the organisation; or • the right, directly or indirectly, to appoint 50% or more of the trustees, directors or managers (however described) of the entity. Council has an interest in seven organisations that meet these definitions: • Whangarei Art Museum Trust • Whangarei District Airport • Northland Regional Landfill Limited Partnership • Whangarei Waste Ltd • Northland Event Centre Trust • Springs Flat Contractors Ltd • Local Government Funding Agency. The Local Government Funding Agency is a CCO by nature of many local authorities jointly having at least 50 per cent shareholding. There are 31 shareholders, of which Council is one.

83 Each of these organisations are required to complete a Statement of Intent (SOI), unless an exemption under the Local Government Act 2002 has been granted. Under the Act if an entity is exempt then it is not a CCO. Whangarei Waste Ltd, Springs Flat Contractors Ltd and Northland Event Centre Trust are exempt organisations. The non-exempt entities are: Whangarei Art Museum Trust (WAMT) Due to the progression of the Hundertwasser Wairau Māori Art Centre project, on 14 December 2017 WAMT was de-exempt and is now subject to the reporting requirements under the Local Government Act 2002 (LGA). WAMT is incorporated as a Trust Board under the Charitable Trusts Act 1957. The board comprises seven positions, four appointed by Council. WAMT relies on funding from Council and its museum is located in Council-owned premises. WAMT operates to the following principles, to: • be responsible for the establishment and management of an art museum • properly maintain, catalogue, conserve and display works of art including Council’s art collection • support, stimulate and enhance the artistic and cultural life of our District • purchase, collect and show quality works of art to enhance and enlarge the present collection • promote the Whangarei Art Museum and to attract touring exhibitions and encourage artists to exhibit their work • maximise the benefits of an art museum for the people of the Whangarei District and encourage the people of the Whangarei District and elsewhere to visit. The performance measures below are contained in the draft Statement of Intent (SOI) and will be put to Council for final approval. KEY PERFORMANCE TARGETS AND MEASURES • Operate within agreed financial budgets • Report on achievement against the strategic objectives and action areas (as outlined in the SOI) in the Half-yearly and Annual Reports • Annually assess operation hours and exhibition quality to meet agreed funding • Acquire and document all new items in accordance with WAMT collection management policy and procedure • Ensure less than 1% of art work handled by staff or the public will suffer irreparable losses or damage • Improve visitor experience • Annual survey demonstrates improvements in how WAMT is regarded

84 • Strengthen community engagement through programs, events and collaborative initiatives including an educational component • Evidence of 3 programs, events or initiatives developed or in development annually • Improve awareness and attendance at WAMT Whangarei District Airport (WDA) The Whangarei District Airport is a fully serviceable airport for the use of visitors, residents and ratepayers and is required to meet the needs of scheduled and non scheduled aviation operators and their customers. It is a key activity that standards of safety are promoted and maintained, recognising the Civil Aviation Authority (CAA) and other safety and health requirements. Our District Airport is a joint venture with the Crown through the Ministry of Transport. The principal activity is the provision of airport and landing facilities. The land is owned 100% by the Crown. Council’s ownership consists of 100% of buildings and lighting and 50% interest in all other assets, liabilities and net surplus. Council operates the airport as the Airport Authority under the Airport Authorities Act 1966 (section 3) and its objectives are to run the airport in a cost effective and efficient manner while meeting Ministry of Transport requirements. Day-to-day management is effected by way of a management contract with Northland Aviation Limited. KEY PERFORMANCE TARGETS AND MEASURES • Operate within agreed financial budgets • Actual spend ≤ budget • Encourage new business development and existing business expansion by engaging alternative aviation and airport service providers and enabling business to grow through lease management and land use consent process • Maintain user satisfaction through achieving satisfactory and very satisfactory ratings on the annual user survey • Maintain employee development initiatives • Maintain best practice noise management process • Explore suitability opportunities • Maintain Airport Certification by continuing to meet certification standards required by the Civil Aviation Authority • Meet required legislative timeframes under the Local Government Act 2002 and Civil Aviation Act 1990 • Implement an effective safety management system • Achieve overall decline in incidents

85 Council Controlled Trading Organisations A Council Controlled Trading Organisation (CCTO) is a CCO that operates a trading operation for making profit. Council has one CCTO: the Northland Regional Landfill Limited Partnership. Northland Regional Landfill Limited Partnership (NRLLP) The NRLLP is operated under a limited partnership agreement between the limited partners Whangarei District Council and Northland Waste Limited. The General Partner is Whangarei Waste Limited. The Limited Partnership is a CCTO. On creation, assets owned by Council were sold to the Limited Partnership on a deferred payment basis over four years. Council’s Prospective Statement of Financial Position records Council’s investment in the Limited Partnership. The day-to-day operational activities of the Partnership are managed by Quay Contracting Limited, a subsidiary of Northland Waste Limited through a management agreement with Whangarei Waste Limited. The main activity of the Partnership is to provide waste disposal facilities in the Whangarei District. The scope of activities of the Limited Partnership is to: • own and operate the Puwera Landfill • own, operate and manage ReSort Resource Recovery Park • conduct such other waste collection and waste management and minimisation activities as the parties agree shall be dealt with by the Limited Partnership from time to time. KEY PERFORMANCE TARGETS AND MEASURES • Open both the Puwera Landfill and Re-Sort facilities for a minimum of 40 hours each week • Ensure that NRLLP’s principal contractor employed to run Puwera and Re-Sort maintains health and safety systems to enable retention of Safe Plus branding • Ensure no notifiable health and safety incidents occur at all operational sites owned by NRLLP • Ensure Re-Sort facilitates a minimum of 40% diversion away from landfill of all material being handled through the site • Maintain compaction of 0.7 tonnes of placed refuse per cubic metre of airspace used • Ensure 6 months landfill capacity is maintained at all times • Achieve a minimum of 70% landfill gas destruction

86 Local Government Funding Agency

The Local Government Funding Agency (LGFA) is not a subsidiary of Council. It is a separate entity, jointly owned by the Crown and 40 local authorities, including Council. The LGFA raises debt funding either domestically and/or oﬀshore in either New Zealand dollars or foreign currency and provides debt funding to New Zealand local authorities. The LGFA will operate with the primary objective of optimising debt funding terms and conditions for participating Local Authorities. Among other things this includes: • providing debt to participating local authorities at the lowest possible interest rates commensurate with the relevant maturity • making longer-term borrowing available to participating local authorities • enhancing the certainty of access to debt markets for participating local authorities, subject always to operating in accordance with sound business practice. The LGFA is a Council Controlled Organisation and provides Council with a Statement of Intent, Half-yearly Report, and an Annual Report under the Local Government Act 2002.

87 88 Financial information

89 Financial statements

Prospective Statement of Comprehensive Revenue and Expenditure

LTP Year 2 Annual Plan LTP Year 3 Variance 2019-20 2020-21 2020-21 $000 $000 $000 $000 Revenue 101,592 Rates 103,784 106,072 (2,288) 4,794 Development and other contributions 2,990 4,952 (1,962) 25,539 Subsidies and grants 21,732 20,190 1,542 14,863 Fees and charges 12,953 15,635 (2,682) 46 Interest revenue 381 41 340 13,225 Other revenue 11,026 13,396 (2,370) 160,059 Total revenue 152,866 160,286 (7,420) Expenses 66,937 Other expenditure 66,132 64,748 (1,384) 40,274 Depreciation and amortisation 46,564 41,934 (4,630) 7,345 Finance costs 7,687 8,690 1,003 30,173 Personnel costs 29,435 30,838 1,403 144,729 Total expenses 149,818 146,210 (3,608) 15,330 Surplus / (deﬁcit) before taxation 3,048 14,076 (11,028) - Taxation charge - - - 15,330 Surplus / (deﬁcit) after taxation 3,048 14,076 (11,028) Other comprehensive revenue and expenses 17,395 Gain / (loss) on infrastructure asset 17,959 17,959 - revaluation - Gain / (loss) on other asset revaluations - - - 32,725 Total comprehensive income 21,007 32,035 (11,028)

90 Prospective Statement of Changes in Net Assets/ Equity

LTP Year 2 Annual Plan LTP Year 3 2019-20 2020-21 2020-21 $000 $000 $000 1,533,884 Opening balance as at 1 July 1,694,291 1,566,608 32,724 Total comprehensive revenue and expense 21,007 32,035 - Adjustments and contributions to net assets/equity - - 1,566,608 Total recognised net assets/equity as at 30 June 1,715,298 1,598,643

91 Prospective Statement of Financial Position

LTP Year 2 Annual Plan LTP Year 3 2019-20 2020-21 2020-21 $000 $000 $000 Assets Current assets 300 Cash and cash equivalents 24,882 300 18,010 Debtors and receivables 22,936 18,052 - Derivative ﬁnancial instruments 61 - 607 Other ﬁnancial assets 328 607 822 Other current assets 918 822 - Assets held for sale - - 19,739 Total current assets 49,125 19,781

Non current assets 10 Derivative ﬁnancial assets - 10 Other ﬁnancial assets: 12,601 - Investments held in joint ventures and subsidiaries 12,226 13,727 2,924 - Investments held in other entities 2,970 2,924 1,681,269 Property plant and equipment 1,799,981 1,742,893 10,385 Intangible assets 12,773 9,876 787 Forestry assets 820 787 55,919 Investment properties 59,084 55,919 1,763,895 Total non current assets 1,887,854 1,826,136 1,783,634 Total assets 1,936,979 1,845,917

Liabilities Current liabilities 28,513 Payables and deferred revenue 25,042 26,315 283 Derivative ﬁnancial instruments 804 283 20,000 Current borrowings 30,000 23,000 2,528 Employee beneﬁts liabilities 2,628 2,578 106 Provisions 55 108 51,430 Total current liabilities 58,529 52,284

92 LTP Year 2 Annual Plan LTP Year 3 2019-20 2020-21 2020-21 $000 $000 $000 Non current liabilities 11,233 Derivative ﬁnancial instruments 17,298 11,233 152,483 Non-current borrowings 144,000 181,923 407 Employee beneﬁts liabilities 407 415 1,318 Provisions 1,346 1,262 156 Payables and deferred revenue 101 156 165,597 Total non current liabilities 163,152 194,989 217,027 Total liabilities 221,681 247,273

1,566,607 Net assets 1,715,298 1,598,644

Equity 921,498 Retained earnings 938,300 937,543 61,928 Other reserves 72,597 59,959 583,180 Asset revaluation reserve 704,401 601,143 1,566,607 Total equity attributable to Council 1,715,298 1,598,644

93 Prospective Statement of Cash Flows

LTP Year 2 Annual Plan LTP Year 3 2019-20 2020-21 2020-21 $000 $000 $000 Cash ﬂows from operating activities 100,964 Receipts from rate revenue 100,837 106,045 25,404 Subsidies and grants received 21,171 20,184 13,367 Other revenue including development contributions 9,735 13,678 14,777 Fees and charges received 12,518 15,631 43 Interest received 380 40 540 Dividends received 35 540 (93,659) Payments to suppliers and employees (95,452) (96,682) (7,345) Interest paid (7,687) (8,690) 54,091 Net cash ﬂow from operating activities 41,537 50,746

Cash flows from investing activities - Proceeds from fixed assets - - - Receipts from investments and loans - - (88,712) Purchase and development of fixed assets (69,057) (83,186) - Purchase of investments and loans provided - - (88,712) Net cash flow from investing activities (69,057) (83,186)

Cash flows from financing activities 34,623 Proceeds from borrowings 22,000 32,440 - Loan repayments received - - - Repayment of borrowings - - - Loans granted - - 34,623 Net cash flow from financing activities 22,000 32,440

1 Net increase/(decrease) in cash, cash equivalents and (5,520) - bank overdrafts 300 Cash, cash equivalents and bank overdrafts at the 30,402 300 beginning of the year 300 Cash, cash equivalents and bank overdrafts at the end of 24,882 300 the year

94 Reserve funds

Estimated Transfers Transfers Estimated opening in out closing balance 1 $000 $000 balance 30 July 2020 June 2021 $000 $000 Asset revaluation reserve 686,442 17,959 - 704,401 Activity Total Asset Revaluation 686,442 17,959 - 704,401 Reserve

Governance and Fishermans Levy - to fund 115 - 115 - strategy maintenance and upgrading of marine facilities for use by commercial ﬁshing vessels Community Community Development 4,156 125 - 4,281 Facilities and Fund 1 - to provide funding services for land for reserves for community facilities on Council owned reserve land Community Community Development 7,062 212 - 7,274 Facilities and Fund 2 - to provide funding services for community facilities on non-Council reserve land Community Community Development 331 10 - 341 Facilities and Fund 3 - to provide funding services for performing arts activities Community Art Acquisitions - to fund 14 - - 14 Facilities and acquisition of artworks services Community Clock Purchases - to fund 52 - - 52 Facilities and purchase of clocks for the services Claphams Clocks Museum Community Leonard Library Reserve - 245 - - 245 Facilities and bequest for the purchase of services library books General reserve To fund operational grants 7 - - 7 committed but not paid Governance and Property Reinvestment 34,998 700 - 35,698 strategy Reserve - to fund property purchases for a commercial return Water Water Reserve - to hold any 26,008 - 8,727 17,281 surpluses for future funding of water activities

95 Estimated Transfers Transfers Estimated opening in out closing balance 1 $000 $000 balance 30 July 2020 June 2021 $000 $000 Solid Waste To hold any surpluses for - 1,958 - 1,958 future funding of Solid Waste activities Flood protecion- To hold any surpluses for - 521 - 521 Hikurangi future funding of Flood Protection activities Planning and Dog Reserve - to hold any 58 - 58 - regulatory surpluses for future funding services of Dog activities Wastewater Wastewater reserve to hold - 4,914 - 4,914 surplus now that debt has been paid oﬀ Trust Funds Bequests held for speciﬁc 11 - - 11 purposes Total Reserves and Special 73,057 8,440 8,900 72,597 Funds

96 Notes to the Financial Statements

Note 1 Accounting Policies Reporting entity Whangarei District Council (Council) is a territorial local authority established under the Local Government Act 2002 (LGA) and is domiciled and operates in New Zealand. Council provides local infrastructure, local public services, and performs regulatory functions to the community. The relevant legislation governing Council’s operations includes the Local Government Act 2002 and the Local Government (Rating) Act 2002. The Group financial statements provide the consolidated results of Council and its Controlled entities (Springs Flat Contractors Limited, Whangarei Art Museum Trust, Northland Events Centre Trust, Whangarei Waste Limited and Whangarei Quarry Gardens Trust) and the equity accounted results of the joint venture entities in which the Council is a venturer (Whangarei District Airport and Northland Regional Landfill Limited Partnership). Council’s accounting policies include reference to Council and its controlled entities. The 2020-21 Annual Plan is prepared only with respect to the parent, Whangarei District Council. Non-exempt Council controlled entities prepare a Statement of Intent which includes a three-year budget. Due to the immateriality of the controlled entities budgets they are not consolidated into Council’s Annual Plan. For the purposes of complying with generally accepted accounting practice in New Zealand (NZ GAAP), the Council and Group are public benefit entities (PBEs). Basis of preparation The financial statements have been prepared on a going concern basis and the accounting policies have been applied consistently throughout the period. STATEMENT OF COMPLIANCE The financial statements of Council and the Group have been prepared in accordance with the requirements of the LGA and the Local Government (Financial Reporting and Prudence) Regulations 2014 (LG(FRP)R), which include the requirement to comply with generally accepted accounting practice in New Zealand (NZ GAAP). The financial statements have been prepared in accordance with and comply with PBE Standards.

97 PRESENTATION CURRENCY AND ROUNDING The functional currency of Council, each of its subsidiaries and each of the joint ventures in which Council is a venturer, is New Zealand dollars. The financial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand dollars ($’000). BUDGET FIGURES The budget figures have been prepared in accordance with NZ GAAP, using accounting policies that are consistent with those adopted by Council in preparing these financial statements. Summary of Significant Accounting Policies CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONS In preparing these financial statements, estimates and assumptions have been made concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are: • the assessed useful life of an item of property, plant and equipment impacts the carrying amount of that item and the amount of depreciation recognised in relation to that item • assumptions and estimates are applied in determining the fair value of infrastructure assets • the impairment assessment of non-financial assets requires the use of key assumptions and estimates • the determination of the landfill aftercare provision requires the use of key assumptions and estimates • Council relies on the assumptions and estimates made by external valuers when performing the investment property revaluation CRITICAL JUDGEMENTS IN APPLYING ACCOUNTING POLICIES Management has exercised the following critical judgements in applying accounting policies for the budget figures: • classification of property: Council owns a number of properties held to provide housing to pensioners. The receipt of market based rental from these properties is incidental to holding them. The properties are held for service delivery objectives as part of Council’s social housing policy. The properties are therefore accounted for as property, plant, and equipment rather than as investment property.

98 • revenue from exchange and non-exchange transactions: Council has exercised professional judgement when determining whether the substance of a transaction is that of non-exchange or exchange. Council has reviewed its revenue streams and referred to its Revenue and Financing Policy to identify activities partially funded by rates revenue. When this occurs, the revenue from that activity is treated as non- exchange. Council believes revenue recognition materially complies with the PBE accounting standards. • determine control/joint control: Council has determined in respect to associated entities its control or joint control when deciding inclusion or non-inclusion in Council and the Group’s financials. Council considers various factors to determine control including: its capacity to control financing and operating policies, benefits obtained from the activities of the subsidiary, majority voting power on the governing body, trust deeds, as well as external advice. See Significant Forecasting Assumptions on page 114 for additional assumptions applied to the prospective financial information. REVENUE Revenue comprises the fair value of the consideration received or receivable for the sale of goods and services, excluding Goods and Services Tax, rebates and discounts and after eliminating sales within the Group. Revenue may arise from exchange or non-exchange transactions. Exchange transactions are transactions in which one entity receives assets or services, or has liabilities extinguished, and directly gives approximately equal value (primarily in the form of cash, goods, services, or use of assets) to another entity in exchange. Non-exchange transactions are transactions that are not exchange transactions. In a non-exchange transaction, an entity either receives value from another entity without directly giving approximately equal value in exchange, or gives value to another entity without directly receiving approximately equal value in exchange. Where a non-exchange transaction stipulates that the Group must provide specified services in exchange for revenue, the Group determines whether that stipulation constitutes a restriction or a condition: • a restriction specifies the services that must be performed, but does not require funds to be returned if they are not spent as stipulated. Revenue from a non- exchange transaction with restrictions is recognised when received, or when the Group becomes entitled to it. • a condition specifies the services that must be performed and requires funds to be returned if they are not spent as stipulated. Non exchange transactions with conditions are recognised as liabilities when received and revenue is recognised and the associated liability extinguished as the specified services are provided. Revenue from non exchange transactions that do no stipulate that the Group must provide specified services in exchange for revenue is recognised on receipt.

99 Pledges are not recognised as revenue as the Group is unable to control the access to the funds. Pledges are disclosed as a contingent asset when the money is pledged and recognised as revenue when the pledged money is received. Rates The following policies for rates have been applied: • General rates, targeted rates (excluding water-by-meter), and uniform annual general charges are recognised at the start of the financial year to which the rates resolution relates. They are recognised at the amounts due. Council considers that the effect of payment of rates by instalments is not sufficient to require discounting of rates receivables and subsequent recognition of interest revenue. • Rates arising from late payment penalties are recognised as revenue when rates become overdue. • Revenue from water-by-meter rates is recognised on an accrual basis based on usage. Unbilled usage, as a result of unread meters at year end, is accrued on an average usage basis. • Rates remissions are recognised as a reduction of rates revenue when Council has received an application that satisfies its rates remission policy. • Rates collected on behalf of Northland Regional Council (NRC) are not recognised in the financial statements, as Council is acting as an agent for NRC. Development and financial contributions Development and financial contributions are recognised as revenue when Council provides, or is able to provide, the service for which the contribution was charged. Otherwise, development and financial contributions are recognised as liabilities until such time as Council provides, or is able to provide, the service. Subsidies and grants Council receives funding assistance from the New Zealand Transport Agency, which subsidises part of the costs of maintenance and capital expenditure on the local roading infrastructure. The subsidies are recognised as revenue upon entitlement, as conditions pertaining to eligible expenditure have been fulfilled. FEES AND CHARGES Building and resource consent revenue Fees and charges for building and resource consent services are recognised when complete. Sale of goods Revenue from the sale of goods is recognised which a product is sold to the customer. INTEREST REVENUE AND FINANCE COSTS Borrowing costs are expensed in the financial year in which they are incurred.

100 VESTED OR DONATED PHYSICAL ASSETS For assets received for no or nominal consideration, the asset is recognised at its fair value when Council obtains control of the asset. The fair value of the asset is recognised as revenue. The fair value of vested or donated assets is usually determined by reference to Council’s most recent valuation rates and useful lives. SUPERANNUATION SCHEMES – DEFINED CONTRIBUTION SCHEMES Employer contributions to KiwiSaver, the Government Superannuation Fund and other defined contribution superannuation schemes are accounted for as defined contribution schemes and are recognised as an expense in the surplus or deficit when incurred. GRANT EXPENDITURE Non-discretionary grants are those grants that are awarded if the grant application meets the specified criteria. They are recognised when an application that meets the specified criteria for the grant has been received. Discretionary grants are those grants that are awarded at the discretion of Council. They are recognised when a grant has been approved by Council and that approval has been communicated to the applicant. Council’s grants awarded have no substantive conditions attached. OPERATING LEASES An operating lease is a lease that does not transfer substantially all the risks and rewards incidental to ownership of an asset. Lease payments under an operating lease are recognised as an expense on a straight-line basis over the lease term. Lease incentives received are recognised in the surplus or deficit as a reduction of rental expense over the lease term. INCOME TAX Council is not subject to income tax except for revenue derived from Council Controlled Organisations (Northland Regional Landfill Limited Partnership and Whangarei District Airport). Income tax expense includes components relating to both current tax and deferred tax. Current tax is the amount of income tax payable based on the taxable profit for the current year, plus any adjustments to income tax payable in respect of prior years. Deferred tax is the amount of income tax payable or recoverable in future periods in respect of temporary differences and unused tax losses. Temporary differences are differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit.

101 Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which the deductible temporary differences or tax losses can be utilised. Deferred tax is not recognised if the temporary difference arises from the initial recognition of goodwill or from the initial recognition of an asset or liability in a transaction that affects neither accounting profit nor taxable profit. Current tax and deferred tax are measured using tax rates (and tax laws) that have been enacted or substantively enacted at balance date. Current and deferred tax is recognised against the surplus or deficit for the period, except to the extent that it relates to items recognised in other comprehensive revenue and expense or directly in equity. CASH AND CASH EQUIVALENTS Cash and cash equivalents includes cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the statement of financial position. The carrying value of cash at bank and short-term deposits with maturities less than three months approximates their fair value. DEBTORS AND RECEIVABLES Short-term receivables are recorded at the amount due, less any provision for uncollectability. A receivable is considered to be uncollectable when there is evidence that the amount due will not be fully collected. The amount that is uncollectable is the difference between the amount due and the present value of the amount expected to be collected. OTHER FINANCIAL ASSETS The Group classifies its financial assets in the following categories: financial assets at fair value through surplus or deficit, loans and receivables, held to maturity financial assets and financial assets at fair value through the statement of comprehensive revenue and expense. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its investments at initial recognition and re-evaluates this designation at every reporting date. Financial assets at fair value through surplus or deficit This category has two sub categories: financial assets held for trading and those designated at fair value through profit or loss at inception. A financial asset is classified in this category if acquired principally for the purpose of selling in the short

102 term or if so designated by management. Derivatives are also categorised as held for trading unless they are designated as hedges. Assets in this category are classified as current assets if they are either held for trading or are expected to be realised within 12 months of balance date. The Group’s financial assets at fair value through surplus or deficit comprise in the money derivatives (principally interest rate swaps). Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise when the Group provides money, goods or services directly to a debtor with no intention of selling the receivable. They are included in current assets, except for those with maturities greater than 12 months after balance date, which are included in non-current assets. The Group’s loans and receivables comprise cash and cash equivalents, trade and other receivables, loans to community organisations and related party loans. Loans to community organisations at nil or below market interest rates are initially recognised at the present value of their expected future cash flows, discounted at the current market rate of return for a similar financial instrument. The difference between the face value and present value of expected future cash flows of the loan is recognised in surplus or deficit as a grant. Held to maturity investments Held to maturity investments are non derivative financial assets with fixed or determinable payments and fixed maturities that management has the positive intention and ability to hold to maturity. The Group currently has no financial assets classified as held to maturity. Financial assets at fair value through the statement of comprehensive revenue and expense Financial assets at fair value through the statement of comprehensive revenue and expense are non-derivatives that are either designated in this category or not classified in any of the other categories. They are included in non current assets unless management intends to dispose of the investment within 12 months of balance date. The Group’s shares in public companies are included in this category as they are not classified in any other category. These are held for strategic purposes and there is no intention to sell. Measurement Purchases and sales of financial assets are recognised on trade date (which is the date on which the Group commits to purchase or sell the asset). Financial assets are initially measured at fair value plus transaction costs unless they are carried at fair value through surplus or deficit, in which case they are recognised at fair value and the transaction costs are expensed.

103 After initial recognition, all financial assets are measured at fair value. Council uses a variety of methods to determine fair value of financial assets. Some of these include quoted market prices and estimated discounted cashflows. Realised and unrealised gains and losses arising from changes in the fair value of financial assets are included in surplus or deficit in the period in which they arise. The Group assesses at each balance date whether there is objective evidence that a financial asset or a group of financial assets is impaired. Impairment is recognised in surplus or deficit. De-recognition Financial assets are de-recognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership. NON-CURRENT ASSETS HELD FOR SALE Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. They are measured at the lower of their carrying amount and fair value less costs to sell. Any impairment losses for write-downs are recognised in the surplus or deficit. Any increases in fair value (less costs to sell) are recognised up to the level of any impairment losses that have been previously recognised. Non-current assets are not depreciated or amortised while they are classified as held for sale. INVESTMENT PROPERTIES Investment properties are properties which are held either to earn rental revenue or for capital appreciation or for both and generate cash flows largely independent of other assets held by the entity. An investment property is measured initially at its cost, including transaction costs. After initial recognition, investment property is measured at fair value at each reporting date. Gains or losses arising from a change in the fair value of investment property are recognised in surplus or deficit. Investment properties do not include property held primarily for strategic purposes or to provide a social service (such as pensioner housing), even though such property may earn rentals or appreciate in value. Such properties are instead classified as items of property, plant and equipment. When the use of a property changes from investment property to owner occupied property, the property is reclassified as owner occupied property and recorded at its fair value at the date of transfer. FORESTRY ASSETS Standing forestry assets are independently revalued to fair value less estimated costs to sell for one growth cycle. 104 Gains or losses arising on initial recognition of forestry assets at fair value less estimated costs to sell and from a change in fair value less estimated costs to sell are recognised in the surplus or deficit when incurred. Forestry maintenance costs are recognised in the surplus or deficit when incurred. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment is initially recognised at cost. The cost of an item of property, plant and equipment includes its purchase/ construction price and costs directly attributable to bringing it to the location and condition necessary for it to operate as intended. In the case of landfills, post closure costs and restoring the site on which it is located are included. Where an item of property, plant and equipment is self constructed, its construction cost includes the cost of materials and direct labour and an appropriate proportion of production overheads. Costs are recognised as work in progress and are transferred to the relevant asset class only when construction is complete. Where an item of property, plant and equipment is donated or received at a subsidised amount, it is initially recognised at fair value. This applies to some infrastructure assets and land which has been vested to the Group and as part of the subdivision consent process: • the vested reserve land has been recognised at the time of transfer at market value, which is recognised as vested asset revenue and deemed to be its initial cost. • vested infrastructure assets have been valued on initial recognition based on the actual quantities of infrastructure components vested and the current ‘in the ground’ cost of providing identical services. Revaluation Property, plant and equipment that is carried under the revaluation model is revalued with sufficient regularity to ensure that the carrying amount does not materially differ from fair value. All revalued property, plant and equipment is revalued at least every three years, except for roading which is revalued annually, and pensioner housing, which is revalued every five years. The valuation method employed is optimised depreciated replacement cost, except pensioner housing which is valued at market value. Revaluations are accounted for on a class of asset basis. An increase in carrying amount is recognised in an asset revaluation reserve in equity, except to the extent that it reverses a revaluation decrement for the same asset class previously recognised in surplus or deficit, in which case the increment is recognised in surplus or deficit. Decreases that offset previous increases of the same asset class are recognised in the asset revaluation reserve in equity; all other decreases are recognised in surplus or deficit. Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. 105 Additions The cost of an item of property, plant, and equipment is recognised as an asset if and only if, it is probable that future economic benefits or service potential associated with the item will flow to Council and Group and the cost of the item can be measured reliably. Work in progress is recognised at cost less impairment and is not depreciated. In most instances, an item of property, plant, and equipment is initially recognised at its cost. Where an asset is acquired through a non-exchange transaction, it is recognised at its fair value as at the date of acquisition. Costs incurred subsequent to initial acquisition are recognised when the recognition criteria above is met. All other repair and maintenance costs are recognised in surplus or deficit as incurred. The costs of day-to-day servicing of property, plant and equipment are recognised in the surplus or deficit as they are incurred. Disposals Gains and losses on disposals are determined by comparing the disposal proceeds with the carrying amount of the asset. Gains and losses on disposals are reported net in the surplus or deficit. When revalued assets are sold, the amounts included in asset revaluation reserves in respect of those assets are transferred to accumulated funds. Subsequent measurement Subsequent to initial recognition, items of property, plant and equipment are carried under either the cost model (cost less accumulated depreciation and accumulated impairment) or the revaluation model (fair value at the date of the revaluation, less any subsequent accumulated depreciation and subsequent accumulated impairment losses). When the use of a property changes from owner-occupied to investment property, the property is reclassified as an investment property at its carrying value at the date of the transfer, and then revalued annually in line with the investment property accounting policy. Depreciation Depreciation is provided on a straight-line basis on all property, plant, and equipment (excluding land and work in progress), at rates that will write-off the cost (or valuation) of the assets to their estimated residual values over their useful lives. Where material parts of an item of property, plant and equipment have different useful lives, or where significant parts of an item of property, plant and equipment are required to be replaced at intervals, they are accounted for as separate items of property, plant and equipment. The useful lives and associated depreciation rates of major classes of assets have been estimated as follows:

106 Class of PP&E Estimated useful life Class of PP&E Estimated useful life Operating assets Water Land Indefinite Pipes 50-107 Buildings 10-100 Plant and equipment 5-80 Strategic land Indefinite Treatment plant 60 Strategic buildings 35-50 Wastewater Pensioner housing – Indefinite Pipes 30-101 land Pumps and pump 20-100 Pensioner housing - 14-80 stations buildings Manholes 80-101 Library books 5 Treatment plant 15-100 Motor vehicles 5 Stormwater Office furniture and 3-20 Pipes 11-125 fittings Manholes 11-100 Plant and equipment 3-80 Parks and recreation Infrastructure assets Walkways, reserves 10-100 and sports fields Land for roads* Indefinite Restricted assets Roading network Heritage assets** Indefinite Bridges 15-100 Parks and reserve Indefinite Carriageways 4-70 land Formation Indefinite Marina structures*** 40-44 Culverts 35-80 Footpaths 10-55 Kerbs and channels 60 Street and road signs 15 Traffic services 15-40

The residual value and useful life of an asset is reviewed, and adjusted if applicable, at each ﬁnancial year end. *Land under roads was valued based on fair value of adjacent land, eﬀective 30 June 2005. On transition to NZ IFRS Council elected to use the fair value of land under roads as at 30 June 2007 as deemed cost. Land under roads is no longer revalued. ** Valued at the estimated current market value as at 30 June 2002 by the Art Museum Curator. Subsequent additions are recorded at cost or market value. Donated assets do not form part of the cyclical valuation.

107 *** Historical assets situated at Whangarei Marina and Tutukaka Marina (under the management of the Whangarei Harbour Marina Trust and the Tutukaka Marina Management Trust respectively). Impairment of property, plant and equipment Property, plant and equipment that have a finite useful life are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Group conducts an annual review of asset values, which is used as a source of information to assess for any indicators of impairment. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and its value in use. If an asset’s carrying amount exceeds its recoverable amount, the asset is regarded as impaired and the carrying amount is written-down to the recoverable amount. Impairment losses for revalued items are recognised in the same manner as revaluation decrements. Impairment losses for items carried at cost are recognised in the surplus or deficit. Value in use for non-cash-generating assets Non-cash-generating assets are those assets that are not held with the primary objective of generating a commercial return. For non-cash-generating assets, value in use is determined as the present value of the asset’s remaining service potential, which is the depreciated replacement cost of the asset. Value in use for cash-generating assets Cash-generating assets are those assets that are held with the primary objective of generating a commercial return. The value in use for cash-generating assets is the estimated present value of expected future cashflows. INTANGIBLE ASSETS Computer software Acquired computer software licences are capitalised based on the costs incurred to acquire and prepare the software for use. Costs directly associated with the development of identifiable and unique software products, where the criteria for capitalisation have been met, are recognised as an asset. Staff training costs are recognised in the surplus or deficit when incurred. Computer software assets are amortised using the straight-line method over their estimated useful lives (three to ten years).

108 Easements Easements are recognised at cost, being the costs directly attributable to bringing the asset to its intended use. Easements have an indefinite useful life and are not amortised, but are instead tested for impairment annually. Carbon credits The Group participates in the New Zealand Emission Trading Scheme (ETS). Purchased New Zealand Units (NZU’s) are recognised at cost on acquisition, and NZU’s which represent carbon credits received from the Government are recognised at fair value as at the date of transfer. NZU’s have an indefinite useful life and consequently aren’t amortised, but are tested for impairment annually. After initial acquisition, NZU’s are recorded at the NZU spot rate at 30 June. This is considered to be fair value. Amortisation The carrying value of an intangible asset with a finite life is amortised on a straight-line basis over its useful life. Amortisation begins when the asset is available for use and ceases at the date that the asset is derecognised. The amortisation charge for each financial year is recognised in the surplus or deficit. The useful lives and associated amortisation rates of major classes of intangible assets have been estimated as follows:

Class of intangible asset Estimated useful life (years) Computer software 3-10

Impairment of intangible assets Intangible assets that have an indefinite useful life, or are not yet available for use, are not subject to amortisation and are tested annually for impairment. For further details, refer to the policy for impairment of property, plant and equipment. The same approach applies to the impairment of intangible assets. DERIVATIVE FINANCIAL INSTRUMENTS The Group uses derivative financial instruments (principally interest rate swaps) to hedge various risks (principally those associated with borrowing at variable interest rates). Derivatives are initially recognised at fair value on the date a derivative contract is entered into. Any associated transaction costs are expensed. Derivatives are subsequently carried at fair value. In the money derivatives are classified as financial assets at fair value through surplus or deficit and out of the money derivatives are classified as financial liabilities at fair value through surplus or deficit.

109 The method of recognising changes in fair value depends on whether the derivative is designated as a hedging instrument and if so, the nature of the item being hedged. None of the Group’s derivatives is designated as a hedging instrument. All changes in the fair value of the Group’s derivatives are recognised in surplus or deficit and fair value is assessed annually. PAYABLES AND DEFERRED REVENUE Short-term creditors and other payables are recorded at their face value. PROVISIONS A provision is recognised for future expenditure of uncertain amount or timing when: • there is a present obligation (either legal or constructive) as a result of a past event; • it is probable that an outflow of future economic benefits will be required to settle the obligation; and • a reliable estimate can be made of the amount of the obligation. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognised as an interest expense and is included in “finance costs”. BORROWINGS Borrowings are initially recognised at their fair value plus transaction costs. After initial recognition, all borrowings are measured at amortised cost using the effective interest method. Borrowings are classified as current liabilities unless Council or the Group has an unconditional right to defer settlement of the liability for at least 12 months after balance date. EMPLOYEE ENTITLEMENTS Short-term employee entitlements Employee benefits that are due to be settled within 12 months after the end of the year in which the employee provides the related service are measured based on accrued entitlements at current rates of pay. These include salaries and wages accrued up to balance date and annual leave earned to, but not yet taken at balance date. Long-term employee entitlements Employee benefits that are due to be settled beyond 12 months after the end of the year which the employee provides the related service, such as long service leave, have been calculated on an actuarial basis. Loyalty and performance bonuses are one off payments to staff members who have provided ten or more years of service to Council and have attained the prerequisite

110 performance achievements over the preceding three years of service. The liability is assessed using current rates of pay, taking into account years of service, years to entitlement and likelihood that staff will reach the point of entitlement and achieve the targeted performance level. These estimated amounts are discounted to their present value using an appropriate discount rate. Defined contribution schemes Obligations for contributions to KiwiSaver are accounted for as defined contribution superannuation schemes and are recognised as an expense in the surplus or deficit when incurred. EQUITY Equity is the community’s interest in Council and is measured as the difference between total assets and total liabilities. Equity is disaggregated and classified into the following components: • accumulated funds • reserves and special funds • asset revaluation reserve. Reserves and special funds These reserves and funds are a component of equity generally representing a particular use to which various parts of equity have been assigned. Reserves may be legally restricted or created by Council. Some reserves and special funds are subject to specific conditions accepted as binding by Council and which may not be revised by Council without reference to the courts or a third party. Transfers to and from these reserves may be made only for specified purposes or when specified conditions are met. Also included in reserves and special funds are reserves restricted by Council decision. Council may alter them without reference to any third party or the courts. Transfers to and from these reserves are at the discretion of Council. Asset revaluation reserves This reserve relates to the revaluation of property, plant and equipment to fair value. CAPITAL COMMITMENTS AND OPERATING LEASES Operating leases An operating lease is a lease that does not transfer substantially all the risks and rewards incidental to ownership of an asset to the lessee. The Group as a lessee The Group is a lessee in operating leases. Lease payments under an operating lease are recognised on a straight-line basis over the term.

111 The Group as a lessor The Group is a lessor in operating leases. Receipts from operating leases (net of incentives provided to lessees) are recognised on a straight-line basis over the term of the lease. Capital commitments Capital commitments represent capital expenditure contracted for at balance date but not yet incurred. GOODS AND SERVICES TAX Items in the financial statements are stated exclusive of goods and services tax (GST), except for receivables and payables, which are presented on a GST inclusive basis. Where GST is not recoverable as input tax, it is recognised as part of the related asset or expense. The net amount of GST recoverable from or payable to Inland Revenue is included as part of receivables or payables in the statement of financial position. The net GST paid to or received from Inland Revenue, including the GST relating to investing and financing activities, is classified as an operating cash flow in the Cash Flow Statement. Commitments and contingencies are disclosed exclusive of GST. PUBLIC BENEFIT ENTITY FINANCIAL REPORTING STANDARD 42 PROSPECTIVE FINANCIAL STATEMENTS (PBE FRS 42) Council has complied with PBE FRS 42 in the preparation of these prospective financial statements. The following information is included to satisfy the requirements of PBE FRS 42: (i) Description of the nature of the entity’s current operation and its principal activities: Whangarei District Council is a territorial local authority, as defined in the Local Government Act 2002. Council’s principal activities are outlined within this Annual Plan. (ii) Purpose for which the prospective financial statements are prepared: It is a requirement of the Local Government Act 2002 to present prospective financial statements that span one year and include them within the Annual Plan. This allows ratepayers and residents the opportunity to review Council’s projected financial results and position. Information included in these prospective financial statements may not be appropriate for other purposes. Prospective financial statements are revised annually to reflect updated assumptions and costs. (iii) Bases for assumptions, risks and uncertainties: The financial information has been prepared based on best estimate assumptions as to the future events which Council expect to take place. Council has considered factors that may lead to a material difference between information in the prospective financial statements and actual results. See Significant Forecasting Assumptions on page 114 for additional assumptions applied to the prospective financial information. 112 (iv) Cautionary note: The financial information is prospective. Actual financial results are likely to vary from the information presented and these variations may be material. (iv) Other disclosures: These prospective financial statements were adopted as part of the 2020-21 Annual Plan for Whangarei District Council on 9 July 2020. Council is responsible for the prospective financial statements presented, including the assumptions underlying prospective financial statements and all other disclosures. This Annual Plan is prospective and as such contains no actual operating results.

113 Note 2 Forecasting assumptions

Financial Impact Level of Financial impact risk for high uncertainty for assumption financial risk with high level assumptions of uncertainty General assumptions District growth: the number of residential High The level of High Every 1% of ratepayers in Whangarei is expected to subdivision Development grow each year as more dwellings are built and Contribution or properties divided – details of expected development revenue not areas of growth are outlined in Council’s activity is achieved Growth Strategy which can be viewed on difficult to will lead to Council’s website. forecast and a reduction Development contributions: the value carries a in income of of development contributions collected is high level of approximately dependent on the number of subdivision uncertainty. $30k, reducing lots developed and on the level of available funding new service connections taking place. for Council Development contributions (DC’s) are activity. forecast based on historical data with a growth factor applied. Council has assumed no changes to the current DC policy. Rate Increase: rates increases differ from Low Not Low Not applicable the Financial Strategy contained within applicable the 2018-28 Long Term Plan. Due to the impact of COVID-19 on ratepayers, Council is increasing rates by inflation only (this is 2.2% plus growth*) and there will be no increase to Flood Protection rates. Rates increases are: • General and targeted rates (excluding metered water and Flood Protection): LGCI 2.2% • Metered Water: no increase • Flood Protection: no increase *A growth component is also factored into overall budgets for rates revenue to reflect the increase in rateable properties in our district during 2019-20

114 Financial Impact Level of Financial impact risk for high uncertainty for assumption financial risk with high level assumptions of uncertainty Inflation: The impact of Inflation has been Low Not Medium If inflation is factored into producing the prospective applicable 1% more or financial statements. This has been less than the achieved by using price level adjustors forecast Local sourced from BERL. The main financial risk Government Cost for Council is that operating and capital Index of 2.2%, expenditure items rise faster than revenue total revenue items. Due to the uncertainty of COVID-19 would vary by impacts, the inflation risk is considered to approximately be medium. $1.53 million, total expenditure by approximately $1.50 million and the net surplus would move by approximately $30k. COVID-19 Impacts: Annual Plan modelling High The impact High The impacts was undertaken to establish best and worst of COVID-19 of COVID-19 case scenarios which helped to form an is difficult may vary from assumed scenario which the Annual Plan is to forecast the assumed based on. and carries a scenario high level of resulting in uncertainty. variances against budget for the 2020-21 year. COVID-19 Relief Package: Council has Low Not Low Not applicable included a $3m targeted relief package applicable within the budget for community groups, businesses and ratepayers. Budgets for some elements are based on estimates of take-up rates Revenue and Financing Policy: The Low Not Low Not applicable 2020-21 Annual Plan budget presents an applicable operating surplus enabling Council to be compliant with the Revenue and Financing Policy in terms of funding sources for operating expenses. Property Transactions: Council have not Low Not Low Not applicable budgeted for any property purchases or applicable sales within the 2020-21 Annual Plan budget.

115 Financial Impact Level of Financial impact risk for high uncertainty for assumption financial risk with high level assumptions of uncertainty Metered water: consumption of metered Low Not Low Not applicable water has been estimated at levels applicable consistent with prior year actuals plus a growth component. User fees: the majority of user fees have Medium Not Medium Not applicable increased by inflation. Fee revenue has applicable been reviewed for potential impacts of Covid-19 and adjusted to reflect the expected level of services provided. Increases are based on expected cost increase which is assumed to be sufficient for funding purposes. These will be reviewed annually to ensure compliance with Council’s Revenue and Financing Policy. Rental Income: Council has reviewed Low Not Low Not applicable rental income for potential impacts of applicable COVID-19 and adjusted accordingly. Crown Infrastructure Partners (CIP) Medium Not High Council may and Tourism Infrastructure Fund (TIF): applicable need to adjust Council has applied for Government the timing of funding for projects through the COVID-19 projects to CIP programme and TIF. Due to the incorporate uncertainty surrounding government those where direction and whether Council will other funding is be successful, we have not made any available (i.e. allowance for these projects within the delivering some 2020-21 Annual Plan budget. projects in future years of the Long Term Plan). Climate change: Council’s Activity Low Not Medium Not applicable Management Planning Policy and Practice applicable Document contains the following Policy Statement on Climate Change: ‘Whangarei District Council shall consider the effects of climate change on the activity in accordance with the latest Ministry for the Environment guidelines.’ The impact on Council’s infrastructure over the 10 years of the LTP is considered acceptable when compared with the currently-used design standards for new infrastructure, providing Ministry of Environment predictions are generally accurate.

116 Financial Impact Level of Financial impact risk for high uncertainty for assumption financial risk with high level assumptions of uncertainty Expenditure assumptions Interest rates: the average cost of Medium Interest rate Medium A 1% movement borrowing has been assumed to be 4.76% risk exposure in interest, after for existing and new debt. This is based is managed factoring in on the weighted average cost of capital through long the impact of calculated across the period of the Annual term swaps hedging utilising Plan. Council has a comprehensive interest and forward long term swaps rate hedging program which protects rate cover. would affect against interest rate rises through the life the operating of the plan. budgets by an average of $9k pa. Depreciation funding: Capital expenditure Medium Not Medium Not applicable to replace assets (‘renewals’) will be applicable funded by rates collected to cover the cost of depreciation. Any surplus depreciation component will be used to repay borrowings. Any shortfall in funding requirements will be met through subsidies, operating surplus or increased debt. Further information can be found in the Revenue and Financing Policy, the Financial Strategy and the Infrastructure Strategy. Unfunded depreciation: Council does not Low Not Low Not applicable fund depreciation on transportation assets applicable to the extent that NZTA funds renewals, and this replacement capital expenditure is based on current NZTA funding rates. CAPEX borrowings: the borrowings for Medium Not Low Not applicable capital expenditure are assumed to be applicable repaid at the shorter of the life of the asset or 20 years for determining the funding for that asset. CAPEX: The 2020-21 Annual Plan includes Medium Not Medium Not applicable. a capital projects programme of $90.9m. applicable For the purposes of modelling debt an adjustment has been made to allow for estimated projects not completed during the financial year and carried forward. Actual results may vary to this estimate.

117 Financial Impact Level of Financial impact risk for high uncertainty for assumption financial risk with high level assumptions of uncertainty Asset assumptions Subsidies: New Zealand Transport Agency High If a planned High NZTA subsidies (NZTA) subsidies have been included based significant not approved will on Central Government contributions to capital reduce capital certain capital expenditure - subsidies project that subsidy income, average 53%. All subsidies are disclosed has a capital and operating within operating revenue and are subsidy surplus. This contingent on the applicable capital associated would impact projects taking place. with it is not Council’s Council has assumed there are no changes approved Financial to the subsidy rates in this Annual Plan. by NZTA, Prudence The granting of subsidies for specific Council Balanced Budget programmes are contingent on being will not Benchmark approved by NZTA. Council will not receive the result. know whether projects for which they budgeted The timing of have applied for funding from NZTA are capital completion of approved until after the Annual Plan is subsidy the relevant adopted. income. capital projects may also differ to the plan. Depreciation: depreciation rates for each Low Not Medium Not applicable asset group have been calculated using applicable rates included in the Accounting Policies. Depreciation rates on infrastructure assets are based on the 2019 revaluation rate average for each activity. Asset revaluations: Medium Not Medium Not applicable • Infrastructure assets: An assumption applicable has been made that revaluation of infrastructure assets will occur every three years, with the most recent revaluation occurring 30th June 2019. • Roading Assets: The revaluation of roading assets will occur yearly. • Pensioner Housing: The revaluation of pensioner housing will remain at five year intervals. Useful lives: Useful lives for each asset Low Not Low Not applicable group have been listed in the Accounting applicable Policies.

118 Financial Impact Level of Financial impact risk for high uncertainty for assumption financial risk with high level assumptions of uncertainty Vested assets: Vested asset income is Low Not Low Not applicable inconsistent from year to year and as a applicable consequence is difficult to forecast. It has therefore been reflected at a flat rate of $3 million plus inflation in the Plan. Vested asset income has no cash impact therefore any financial risk low. Funding sources: Future replacement of Low Not Low Not Applicable significant assets is assumed to be funded applicable in line with the Revenue and Financing Policy. Other financial assets: No movement in Low Not Low Not Applicable the value of Shares held in Civic Assurance applicable Limited and the New Zealand Local Government Funding Agency has been assumed in the budget. Investment properties: No movement Low Not Low Not Applicable in the value of investment properties applicable has been reflected in the Plan given the difficulty of forecasting future values. Any valuation change does not impact cash requirements. Biological assets and derivative financial Low Not Low Not Applicable assets: No movement in the value of applicable biological assets and derivative financial assets has been reflected in the Plan due to difficulty in forecasting future values. Any movements in these assets would have no cash impact to the Plan. Liability assumptions Interest: interest calculated on debt Medium Not Medium Not applicable is based on historical average monthly applicable movements and the impact of current and forecasted interest rate hedging. Borrowings: it is assumed that Council Low Not Low Not applicable will have the facilities to secure funding as applicable required. Derivative Financial Liabilities: No Low Not Low Not applicable movement in the value of derivative applicable financial liabilities has been reflected in the Plan due to difficulty in forecasting future values. Any movements in these assets would have no cash impact to the Plan.

119 Financial Impact Level of Financial impact risk for high uncertainty for assumption financial risk with high level assumptions of uncertainty Strategic Resource Consents: The necessary Medium Not Low Not applicable resource consents required for capital applicable projects will be applied for in due course to align with the planned project timeframes. We assume conditions for resource consents will not alter budgeted project costs significantly. Other Assumptions Strategic assets: Council has not planned Low Not Low Not applicable for the ownership of any strategic assets applicable to be transferred to another party. Council receives vested assets in satisfaction of various development contribution charges. Currency Movement: Council does not Low Not Low Not applicable have any significant exposure to currency applicable movements and consequently has not specifically taken them into account. Flood and Storm Damage: Council does Medium Not Medium Not applicable not budget for storm events, as referred to applicable in the 2018-2048 Infrastructure Strategy. Lack of funding provision for emergency works may result in reduced renewals as renewal funding gets diverted to fund flood damage repairs. Subsidiary assumptions Northern Regional Landfill Limited Low Not Low Not applicable Partnership (NRLLP): Due to COVID-19 applicable Council has not budgeted to receive cash distributions from NRLLP for the 2020-21 year. Northern Transportation Alliance (NTA): Low Not Low Not applicable A shared services agreement between applicable four Northland councils (Kaipara District Council, Far North District Council, Northern Regional Council, Whangarei District Council) and New Zealand Transport Authority (NZTA) was established on 1 July 2016. The activities of the NTA attract subsidy on subsidised projects. Council has made provision for gaining subsidy on the NTA activities for these subsidised projects.

120 Note 3 Depreciation and amortisation by group of activities

LTP Year 2 Annual Plan LTP Year 3 2019 - 20 2020 - 21 2020 - 21 $000 $000 $000 17,805 Transportation 21,226 18,488 5,928 Water 6,139 6,180 48 Solid waste 96 48 6,532 Wastewater 7,239 6,629 2,854 Stormwater 3,100 2,870 312 Flood protection 300 312 5,040 Community facilities and services 5,848 5,357 109 Governance and strategy 174 109 46 Planning and regulatory services 105 46 1,600 Support services 2,337 1,895 40,274 Total depreciation and amortisation 46,564 41,934

121 Benchmarks

Annual plan disclosure statement for year ending 30 June 2021 What is the purpose of this statement? The purpose of this statement is to disclose the council’s planned financial performance in relation to various benchmarks to enable the assessment of whether the council is prudently managing its revenues, expenses, assets, liabilities, and general financial dealings. The council is required to include this statement in its annual plan in accordance with the Local Government (Financial Reporting and Prudence) Regulations 2014 (the regulations). Refer to the regulations for more information, including definitions of some of the terms used in this statement.

Benchmark Planned Met

Rates aﬀordability benchmarks

Income 70% 58% Yes

Increases 5.2% 2.5% Yes

Debt aﬀordability benchmarks

External debt 175% 98% Yes

Net interest to rates revenue 25% 7% Yes

External debt per capita $2,290 $1,554 Yes

Balanced budget benchmark 100% 98% No

Essential services benchmark 100% 142% Yes

Debt servicing benchmark 10% 5.2% Yes

122 Notes 1. RATES AFFORDABILITY BENCHMARK (1) For this benchmark,— (a) the council’s planned rates income for the year is compared with quantified limits on rates contained in the financial strategy included in the council’s long-term plan; and (b) the council’s planned rates increases for the year are compared with quantified limits on rates increases for the year contained in the financial strategy included in the council’s long-term plan. (2) The council meets the rates affordability benchmark if— (a) its planned rates income for the year equals or is less than each quantified limit on rates; and (b) its planned rates increases for the year equal or are less than each quantified limit on rates increases. 2. DEBT AFFORDABILITY BENCHMARK (1) For this benchmark, the council’s planned borrowing is compared with quantified limits on borrowing contained in the financial strategy included in the council’s long-term plan. (2) The council meets the debt affordability benchmark if its planned borrowing is within each quantified limit on borrowing. 3. BALANCED BUDGET BENCHMARK (1) For this benchmark, the council’s planned revenue (excluding development contributions, vested assets, financial contributions, gains on derivative financial instruments, and revaluations of property, plant, or equipment) is presented as a proportion of its planned operating expenses (excluding losses on derivative financial instruments and revaluations of property, plant, or equipment). (2) The council meets the balanced budget benchmark if its revenue equals or is greater than its operating expenses. 4. ESSENTIAL SERVICES BENCHMARK (1) For this benchmark, the council’s planned capital expenditure on network services is presented as a proportion of expected depreciation on network services. (2) The council meets the essential services benchmark if its planned capital expenditure on network services equals or is greater than expected depreciation on network services.

123 5. DEBT SERVICING BENCHMARK (1) For this benchmark, the council’s planned borrowing costs are presented as a proportion of planned revenue (excluding development contributions, ﬁnancial contributions, vested assets, gains on derivative ﬁnancial instruments, and revaluations of property, plant, or equipment). (2) Because Statistics New Zealand projects that the council’s population will grow slower than the national population growth rate, it meets the debt servicing benchmark if its planned borrowing costs equal or are less than 10% of its planned revenue. ADDITIONAL INFORMATION OR COMMENT Due to implications of COVID-19 Council has applied a reduced rates increase of 2.2% (LTP 2018-28 was 4.2%). This combined with reduced revenue streams and a $3m targeted relief programme has resulted in Council not meeting the Balance Budgeted Benchmark for the 2020-21 Annual Plan.

124 Full list of capital projects planned for 2020-21

Programme Project LTP Net timing New/ Annual 2020-21 diﬀerences (savings) Plan $000 $000 $000 2020-21 $000 Transportation Amenity Lighting Amenity Lighting 97 - - 97 Bus Shelters Bus Shelters 96 - - 96 Bus Terminal Bus Terminal 320 (320) - - Development/ Relocation Coastal Protection Coastal Protection 86 - - 86 Structures - Roading Cycleways Cycleways - Subsidised - 100 - 100 Cycleways - Cycleways - - 31 - 31 Unsubsidised Unsubsidised Programmed Work Footpaths Footpaths Renewals 390 - - 390 New Footpaths 426 - - 426 Minor Minor Improvements to 5,465 4,325 - 9,790 Improvements to Network Roading Network Other Roading Southern Entrance 687 (687) - - Projects Intersection Improvement Parking Parking Renewals 237 - - 237 Roading Drainage Drainage Renewals 1,141 135 - 1,276 Roading Subdivision Subdivision Works 53 - - 53 Works Contribution Contribution Seal Extensions Seal Extensions - 1,065 - - 1,065 Unsubsidised Seal Extensions - House - 2,734 - 2,734 Frontage Sealing Sealed Road Sealed Road Pavement 4,296 2,228 - 6,524 Pavement Rehabilitation Rehabilitation

125 Programme Project LTP Net timing New/ Annual 2020-21 differences (savings) Plan $000 $000 $000 2020-21 $000 Sealed Road Sealed Road 4,516 448 - 4,964 Resurfacing Resurfacing Sense of Place Community Led 297 - - 297 Development Streetlights LED Streetlight - 330 - 330 Upgrades Structures Structures Component 1,076 579 - 1,655 Component Replacement Replacement Traffic Signs & Traffic Sign & Signal 915 136 - 1,051 Signals Renewals Transportation Transport Planning 213 - - 213 Planning Studies & Studies & Strategies Strategies Unsealed Road Unsealed Road 864 - - 864 Metalling Metalling Transportation Total 22,239 10,038 - 32,278 Water Water Meters Water Meter Renewals 373 - - 373 Water Reservoirs Reservoir Rehabilitation 107 - - 107 - Programmed Work Three Mile Bush 213 (144) - 69 Reservoir Additional Capacity Waipu Reservoir 107 (107) - - Additional Capacity Kamo Reservoir 213 (100) - 113 Additional Capacity Water Reticulation Reticulation - 258 500 - 758 Programmed Work Minor Projects - 320 - - 320 Emergency Works Fairway Drive Pump 533 - - 533 Station Upgrade Water Treatment Water Treatment 533 - - 533 Plants Plant & Equipment Replacement

126 Programme Project LTP Net timing New/ Annual 2020-21 diﬀerences (savings) Plan $000 $000 $000 2020-21 $000 Treatment Plant 75 (21) - 53 Upgrades SCADA Upgrade 500 249 - 749 Whau Valley Dam Whau Valley Dam 320 (320) - - Improvements Chimney Drain Dam Safety Review 43 (43) - - Whau Valley Water Whau Valley New Water 11,267 1,355 - 12,622 Treatment Plant Treatment Plant Water Total 14,858 1,370 - 16,229 Solid Waste Transfer Stations Transfer Station 53 (53) - - Upgrades Solid Waste Total 53 (53) - - Wastewater Laboratory Laboratory Equipment 21 29 - 50 Renewals & Upgrades Public Toilets Public Toilets 255 90 - 345 Wastewater Asset Wastewater Assessment 45 - - 45 Management Wastewater Sewer Network 3,782 (2,806) - 976 Network Upgrades Sewer Network Renewal 5,833 (4,250) - 1,583 Wastewater Pump Wastewater Pump 427 (70) - 357 Stations Station Renewals Wastewater Wastewater Treatment 4,249 (3,480) - 770 Treatment Plants Plant Upgrades Wastewater Treatment 1,527 (806) - 721 Plant Renewals Wastewater 43 (35) - 8 Reticulation Upgrade Wastewater Total 16,182 (11,328) - 4,854 Stormwater Stormwater Asset Stormwater Catchment 810 (721) - 88 Management Management Plans & Assessments

127 Programme Project LTP Net timing New/ Annual 2020-21 diﬀerences (savings) Plan $000 $000 $000 2020-21 $000 Stormwater Stormwater Upgrades 61 - - 61 Improvements Stormwater Renewals 2,654 (1,537) - 1,117 Blue/Green Network 160 - - 160 Stormwater Total 3,684 (2,258) - 1,426 Flood Protection Flood Protection Total - - - - Community Facilities and Services Civil Defence & Emergency Management Civil Defence Tsunami Sirens New - 59 - 59 & Emergency Tsunami Signage 16 44 - 60 Management Civil Defence Emergency 5 - - 5 Management New Equipment Civil Defence Emergency 27 9 - 36 Management Equipment Renewals Tsunami Sirens 18 - - 18 Renewals Civil Defence & Emergency Management Total 66 112 - 178 Community Development CCTV Network CCTV Upgrades & 138 48 - 187 Improvements Council-Owned Community 27 219 - 245 Community Buildings Renewals & Buildings Improvements Pensioner Housing Pensioner Housing 667 111 - 778 Renewals & Improvements Sense of Place Community Led 752 (438) - 314 Development Community Development Total 1,584 (60) - 1,524 Library Digital Council Library IT Equipment 107 131 - 237 Library Asset Mobile Bus - 4 - 4 Renewals Replacement

128 Programme Project LTP Net timing New/ Annual 2020-21 diﬀerences (savings) Plan $000 $000 $000 2020-21 $000 Library Renewals 5 - - 5 Library Books Book Purchases 689 49 - 738 Library Total 801 183 - 985 Parks and Recreation Cemeteries Cemeteries Renewals 434 51 - 484 Coastal Structures Coastal Structures 2,317 (1,720) - 596 Renewal Coastal Structures Level 63 - - 63 of Service Neighbourhood & Neighbourhood & Public 306 1,175 - 1,481 Public Gardens Gardens Renewals Playgrounds & Playgrounds & 159 284 - 443 Skateparks Skateparks Renewals Sense of Place Public Art 45 32 - 77 Parks Interpretation 45 37 - 81 Information Town Basin - Conversion 1,986 207 - 2,193 of Carpark to Park Pohe Island 1,240 1,466 - 2,706 Development Whangarei City Centre 266 (266) - - Plan Implementation Waterfront Programme - 130 - 130 Sportsﬁelds & Sport & Recreation 579 (472) - 107 Facilities Renewals Sport & Recreation 596 (176) - 420 Growth Tikipunga Soccer Hub 511 (511) - - Walkways and Walkway & Track 360 69 - 428 Tracks Renewals Parks and Recreation Total 8,906 305 - 9,211 Venues and Events Forum North Venue Forum North Venue 92 - - 92 Upgrades Forum North Venue 23 - - 23 Renewals

129 Programme Project LTP Net timing New/ Annual 2020-21 diﬀerences (savings) Plan $000 $000 $000 2020-21 $000 Northland Events Sport & Recreation - - 200 200 Centre Renewals NECT - Exterior General - - 580 580 Renewals NECT Light Tower 1,601 1,468 200 3,268 Renewals NECT Field Renewals - - 310 310 NECT Building Renewals 202 - - 202 Venues and Events Total 1,918 1,468 1,290 4,676 Community Facilities and Services Total 13,275 2,008 1,290 16,573 Governance and Strategy Commercial Parihaka Transmission - 913 - 913 Property Mast Upgrade New Airport New Airport Evaluation 2,532 (2,162) - 370 Evaluation Governance and Strategy Total 2,532 (1,248) - 1,283 Planning and Regulatory Services Dog Pound Dog Pound Renewals 1,415 (833) - 582 Planning and Regulatory Services Total 1,415 (833) - 582 Support Services Business Business Improvement - 102 - 102 Improvement Projects Civic Buildings Furniture Renewals 21 - 10 31 Information Centre - 126 - 126 Upgrade Civic Centre Civic Centre 12,784 - - 12,784 Council Vehicle Council Vehicle 224 - - 224 Replacements Replacements Digital Council Digitisation of Records - 213 - 213 IT Equipment 639 (300) - 339 Replacement Mobility Technology - 220 (111) - 109 Building Decision Support 101 (101) - - System Development

130 Programme Project LTP Net timing New/ Annual 2020-21 diﬀerences (savings) Plan $000 $000 $000 2020-21 $000 Customer Access - 466 (416) - 50 Online Services Asset Management - 688 - 688 Software Upgrade Asset Management 158 - - 158 Mobility Platform as a Service 405 23 - 428 Electronic LIMs 637 (637) - - Digital District Plan and 511 (410) - 101 Policies Online Upgrade Kete - 236 - 236 SharePoint Digital Platform 162 197 - 359 CiA Upgrade - 935 - 935 Corporate Performance 158 168 - 326 Management IT Equipment New 53 - - 53 Minor ICT Projects 85 (2) - 83 Forum North Venue Forum North Venue - - 250 250 Renewals Human Resources Oﬃce Furniture - - 30 30 New Theatre/Expo/ New Theatre 3,883 (3,883) - - Conference Support Services Total 20,508 (3,173) 290 17,625 Projects Total 94,746 (5,476) 1,580 90,850

Breakdown of Net Timing Diﬀerences $000 Less Brought Forward to 2019-20 (2,219) Plus Carry Forward to 2020-21 37,366 Plus Brought Forward to 2020-21 from future years 4,993 Less Carry Forward to future years (45,617) Total net timing diﬀerences (5,476)

131 132 Rates information

133 Funding impact statement

This statement sets out the information required by clause 20 of Schedule 10 of the Local Government Act 2002 to assist ratepayers in understanding the impact of the Annual Plan. This statement should be read in conjunction with the Revenue and Financing Policy prepared as part of the LTP 2018-28 process. Financial disclosures The Local Government Act requires disclosure of all sources of funding in a prescribed format. The Funding Impact Statement showing the overall sources of funding, the amount of funds expected from each source and how those funds will be applied has been included on page 25 of this document, which are to be read together with and form part of this Funding Impact Statement. Rates These rates are based on the funding requirements set out in the Annual Plan together with the land values, capital values and property numbers included in Council’s Rating Information Database. General rates General rates are set under Section 13 of the Local Government (Rating) Act 2002. Council proposes to set a general rate for all rateable land in our District. The general rate will be made up of a uniform annual general charge (UAGC) and a value-based general rate. Value-based general rates The value-based general rate will be assessed on the land value of each rateable rating unit in our District. The general rate will be set on a differential basis based on the category of land use or, in certain circumstances, land zoning. The objective of the differential rate is to achieve the total revenue sought from each category of land use, as set out on page 136. Where a property is used for more than one purpose, the value of the property will be apportioned between the different categories. Subject to legal rights of objection, it shall be at the sole discretion of Council to determine the use or principal use of any rating unit. The value-based general rate for a given property will be assessed by multiplying the land value of the rating unit by the rate per dollar that applies to the category of land use.

134 DIFFERENTIAL BASIS All rating units in our District are allocated to the most appropriate category based on the use to which the land is put or, in specified circumstances, the land’s zone. The categories are: Category 1: Residential All rating units which are used principally for residential or lifestyle residential purposes, including retirement villages, flats and apartments. Category 2: Multi-unit All rating units used principally for residential purposes and on which is situated multi-unit type residential accommodation that is used principally for temporary or permanent residential accommodation for commercial purposes, including, but not limited to, hotels, boarding houses, motels, tourist accommodation, residential clubs, hostels, but excluding any properties which are licensed under the Sale and Supply of Alcohol Act 2012. Category 3: Miscellaneous properties All rating units being any other property not otherwise categorised. Category 4: Rural All rating units which are used principally for agricultural, horticultural, forestry, pastoral or aquaculture purposes, or for the keeping of bees, poultry or other livestock. This does not include properties which are used for non-economic lifestyle residential purposes, generally 20 hectares or less and where the value of the land exceeds the value of comparable farmland. Category 5: Commercial and industrial All rating units used principally for commercial, industrial or related purposes or zoned for commercial, industrial or related purposes and not otherwise categorised. For the avoidance of doubt, this category includes properties licensed under the Sale and Supply of Alcohol Act 2012; and private hospitals and private medical centres. Uniform Annual General Charge The Uniform Annual General Charge (UAGC) is set under Section 15 of the Local Government (Rating) Act 2002. The UAGC will be charged to each separately used or inhabited part (SUIP) of a rating unit. The effect of this is that where a rating unit has more than one use or occupation, a separate charge will apply to each part. The UAGC is calculated according to the judgement of Council on what is the proper balance between the fixed and variable parts of the general rate and on any consequential impacts on individuals and groups of ratepayers. A UAGC of $486.00 (including GST) will apply per SUIP for 2020-21. This is estimated to produce $21.449 million (including GST) for 2020-21 and equates to 30 percent of general rates revenue and 18 percent of total rates revenue.

135 Definition of separately used or inhabited part of a rating unit A separately used or inhabited part is defined as: • any part of a property (rating unit) that is separately used or occupied, or is intended to be separately used or occupied by any person, other than the ratepayer, having a right to use or inhabit that part by virtue of a tenancy, lease, license, or other agreement • any part of a rating unit that is separately used, or occupied, or intended to be separately used or occupied by the ratepayer. Examples include: • each separate shop or business activity on a rating unit • each occupied or intended to be occupied dwelling, flat, or additional rentable unit (attached or not attached) on a rating unit • individually tenanted flats, including retirement units, apartments and town houses (attached or not attached) or multiple dwellings on Māori freehold land on a rating unit • each block of land for which a separate title has been issued, even if that land is vacant. General rates for the 2020-21 financial year Total general rates required for 2020-21 are $71.869 million GST inclusive. This is made up of the value based general rate and the uniform annual general charge. The value-based general rate is set on land value and assessed on a differential basis. The differential rate in the dollar for each category of land use is set to achieve the share of the total revenue sought from each category. The percentage share of revenue sought from each category of land use for 2020-21 is: Residential properties 62.66% Multi-unit properties 0.19% Miscellaneous properties 0.34% Rural properties 9.33% Commercial and industrial properties 27.48% Total 100.00% The amount required from each category is divided by the total land value for that category to establish the cents in the dollar rate for each category. The relationship or differential between the categories will be the result of these calculations. Details of the rates and the amount of revenue sought for the 2020-21 year is:

136 Value-based general rates Uniform Annual General Total general Charge rates

Basis of assessment: Per $ of Basis of assessment: land value Per separately used or inhabited part of a rating unit

Type of rate Rate or Revenue Rate or Revenue Revenue charge sought charge sought sought 2020-21 2020-21 2020-21 2020-21 2020-21 (GST (GST (GST (GST (GST inclusive) inclusive) inclusive) inclusive) inclusive)

Residential $0.0024054 $26,084,000 $486.00 $18,933,000 $45,017,000 category

Multi-Unit $0.0048108 $119,000 $486.00 $21,000 $140,000 category

Miscellaneous $0.0024054 $134,000 $486.00 $107,000 $241,000 category

Rural $0.0030569 $5,657,000 $486.00 $1,052,000 $6,709,000 category

Commercial and $0.0155854 $18,411,000 $486.00 $1,336,000 $19,747,000 Industrial category

Total $50,420,000 $21,449,000 $71,869,000

Targeted rates for the 2020-21 financial year Targeted rates are set under Section 16 of the Local Government (Rating) Act 2002. Targeted rates are used where a Council service provides a specific activity or a benefit to a specific group of people and consequently it is these beneficiaries that are charged the cost of providing the service. It may apply to all ratepayers or a specific group of ratepayers. Sewerage disposal rate The activity for which the targeted rate is set is the operation and maintenance of the sewerage disposal system. The targeted rate will be set and assessed per separately used or inhabited part of a rating unit (as defined on page 136) where the SUIP is connected to Council’s wastewater system. The targeted rate is set on a differential basis. Residential connections will pay a fixed amount regardless of the number of toilet pans or urinals. Other premises, i.e. non-residential, will pay a fixed charge per toilet pan or urinal.

137 Details of rates for and the amount of revenue sought from, targeted rates for sewage disposal are:

Type of rate Basis of assessment Rate or charge Revenue sought 2020-21 (GST 2020-21(GST inclusive) inclusive) Total $22,799,000

Residential category Per separately used or $754.00 $18,261,000 inhabited part of a rating unit Other-non residential Per toilet pan or urinal $482.00 $4,538,000 District-wide refuse management rate The activity funded by this targeted rate is the provision of refuse services not funded by user charges at transfer stations or the per bag charge (paid by stickers or official rubbish bags) for refuse collected at the kerbside. The targeted rate will be applied on a uniform basis to all rateable properties and assessed to all separately used or inhabited parts of a rating unit (as defined on page 136). It funds kerbside and other recycling, litter bins, clearing of refuse from parks, reserves and streets, roadside rubbish, dealing with hazardous wastes, removing abandoned vehicles and the seasonal clean-ups required at beaches and other tourist locations. Costs associated with Council’s waste minimisation programme are also included. Also included is the cost of staffing transfer stations to ensure appropriate waste management of hazardous substances and to recover material such as steel and timber to minimise the items that would normally be dumped as waste through the landfill. These are services that benefit the whole District rather than individual users of our District’s rubbish collection and disposal services. A uniform targeted rate of $191.00 (including GST) will apply per SUIP (as defined at page 136) for 2020-21. This is estimated to produce $8.431 million (including GST) for 2020-21. Water rate The activity for which the targeted rate is set is for the catchment, storage, treatment and distribution of water throughout various parts of our District. A targeted rate set under section 19 of the Local Government (Rating) Act 2002 will apply for water consumption based on water consumed as recorded by a water meter on a per cubic metre basis. The targeted rate under section 19 will be calculated as a fixed charge per unit (cubic metre) of water consumed (“Volumetric consumption charge”). A fixed targeted rate set under section 16 of the Local Government (Rating) Act 2002 will apply to all connected and metered properties (“Supply charge”). This is in addition to the volumetric consumption charge.

138 A fixed targeted rate set under section 16 of the Local Government (Rating) Act 2002 will apply per SUIP of a rating unit for those premises where consumption of water is not recorded through a meter, but the property is connected to any of our District’s water supply systems (“Uniform charge (unmetered)”). A further supply charge is not applied where the uniform unmetered water charge is set. A fixed targeted rate set under section 16 of the Local Government (Rating) Act 2002 will apply per SUIP of a rating unit for availability of water (“Availability charge”) where premises are capable of being connected to the water supply as they are situated within 100 metres of any public water supply reticulation system but are not connected. Targeted rates for back flow prevention apply to all properties which have a back-flow preventer connected. The revenue will be used for the monitoring and maintenance of the back-flow preventers. The rate will be assessed on the size of the back-flow preventer. DETAILS OF RATES FOR, AND THE AMOUNT OF REVENUE SOUGHT FROM, TARGETED RATES FOR WATER

Type of rate Basis of assessment Rate or charge Revenue sought 2020-21 (GST 2020-21 (GST inclusive) inclusive) Water rate $17,465,000 Volumetric consumption Volume of metered water $2.26 Not available charge consumed per cubic metre Supply charge (metered) Provision of service per $34.50 $989,000 separately used or inhabited part of a rating unit Availability charge Availability of service per $34.50 $7,000 separately used or inhabited part of a rating unit Uniform charge (unmetered) Provision of service per $474.00 $37,000 separately used or inhabited part of a rating unit Backﬂow preventer charge Provision of service per Not available connection based on the nature of connection 15/20mm connection $80.42 25mm connection $81.52 32mm connection $96.44 40mm connection $98.69 50mm connection $102.39 80/100mm connection $257.89 150mm connection $301.90 200mm connection $500.01

139 Flood protection rate Hikurangi Swamp Rating Districts A targeted rate applies to properties in the Hikurangi Swamp Special Rating District. The area of land within this special rating district is divided into classes based on location and area of benefit or effect of the scheme on a property. The activity funded by this targeted rate is to defray the costs of the Hikurangi Swamp Major Scheme set out on page 50 of the LTP. The targeted rate is based on a differential graduated scale according to the class of the property and the area of land within the rating unit. Some properties may have areas of land which fall into several classes and the rating differentials are applied accordingly. The targeted rate per hectare for each category (class) of land is set out on the diagram below. A second targeted rate applies to properties in the Hikurangi Swamp Drainage Rating District. The activity funded by this targeted rate is to defray the costs and charges of the Hikurangi Swamp draining scheme. The targeted rate applies differentially to two categories of land: class A and class F as set out in the Hikurangi Drainage District Diagram below. The targeted rate for each category is based on a differential graduated scale according to the class of the property and the area of land within the rating unit. The targeted rate per hectare for each category (class) of land is set out on the diagram below.

HIKURANGI DRAINAGE DISTRICT HIKURANGI MAJOR SCHEME

Henty Rd Henty Rd

P P u u h h ip t Rd ip t Rd u la u la h F h F i e i e Tapuhi e Tapuhi e R r R r d t d t a a e e T T Puhipuhi Puhipuhi Rd Rd nui nui M iika M iika in a in a e K e K

R R

d d

W W a Kaimamaku a Kaimamaku io io t d t d u R u R B s B s l l o b o b b Rd b Rd c i d c i d k G ea k G ea R H R H s s d ig d ig d P d P Rill Rill Opuawhanga R Opuawhanga ill Hukerenui eO'N Hukerenui eO'N Waiotu Waiotu

d B d Byle Rd yle R Rd t R S Whakapara th s J t S Whakapara th s J s H r Rd s H Rd 1 o u 1 or u e ki N b e d ki N b il N R a il N i Rd na e ui e s n Rd a e s n Rd an e enu a Ot en a Ot w nn an w nn an er Le h R ker Le R W on Wh on ro Huk c d ro Hu c d C M C M

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nui Rd Rd Marua nui Rd R Marua o o d Rip Rip

M M H H

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to w w r r G e e o G e e n n e e O o R O o R R R Waro m n Waro m n

t d t d R a R a d Wilsonville e d Wilsonville e z z

k k d d K d K a a i R i R i n i n r d r d a g a g

n J S n J S g Tanekaha o g Tanekaha o r t r t i d t i d t a M a M R R n S arua Rd n S arua Rd d d V e V e d a Hikurangi d a Hikurangi g g R lle r R lle r p d y o p d y o am R R e am R R e

Sw k d G Sw k d G o o o d o d r R r R Otakairangi b r Otakairangi b r h e Rd h e Rd s ow ins s ow ins u M a u M a R M R M Mata Apotu Ma Apotu ra A tara A u p u p Rd o Rd o tu tu R R d d d d R R ing n ing n o R ai o R ai G d M G d M

d Kauri d Kauri

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Matarau a Matarau

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C C Ngararatunua Ngararatunua

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WHANGAREI WHANGAREI

Class A4 Scale: 1:160,000 Class A4 Scale: 1:160,000 0 1.25 2.5 5 km ´ 0 1.25 2.5 5 km ´ A F A B C D E F (C) Crown Copyright Reserved (C) Crown Copyright Reserved Date Saved: 8/02/2018 DZ:HS Date Saved : 8/02/2018 DZ:HS

140 Basis of assessment Rate or charge Revenue sought 2020-21 (gst 2020-21 (gst inclusive) inclusive)

$1,386,000

Per hectare of land in the Hikurangi Swamp Special $1,242,000 Rating area

Class A approx 2,840 ha $206.74 $586,000

Class B approx 1,473 ha $185.68 $274,000

Class C approx 1,371 ha $144.73 $198,000

Class D approx 1,900 ha $20.72 $39,000

Class E approx 1,109 ha $10.42 $12,000

Class F approx 32,424 ha $4.17 $133,000

Per hectare of land in the Hikurangi Swamp Drainage $144,000 Rating District

Class A approx 5,670 ha $21.01 $119,000

Class F approx 11,906 ha $2.11 $25,000

Lump sum contributions Lump sum contributions will not be invited or accepted in respect of any targeted rate. Discount for full payment of annual rates Where the total year’s land rates and any arrears are paid in full by the due date of the ﬁrst instalment a discount will apply. Full details of the actual discount amount available will be included on the rates assessment/invoice.

Due date Discount

Full payment of annual land rates and any arrears 20 September Discount 2.0% 2020

141 Due dates for rates Due dates and penalty dates for land rates paid by instalments A 5% penalty will be added to the amount of each instalment which remains unpaid after the due date for payment as shown in the following table:

Due date Late payment Date penalty applied penalty

Instalment one 20 September 2020 Penalty 5% 23 September 2020

Instalment two 20 November 2020 Penalty 5% 25 November 2020

Instalment three 20 February 2021 Penalty 5% 24 February 2021

Instalment four 20 May 2021 Penalty 5% 25 May 2021

Due dates and penalty dates for water rates Water accounts are processed monthly, two-monthly or six-monthly. Council agrees that the due dates of these accounts will be relative to the consumer’s cyclic billing period and will show on the water rates invoice in accordance with the table that follows. A penalty of 5% will be applied to amounts unpaid after the due date, in accordance with the following table:

Month water rates invoice issued Due date for payment Date penalty will be added

July 20 August 2020 25 August 2020

August 20 September 2020 23 September 2020

September 20 October 2020 23 October 2020

October 20 November 2020 25 November 2020

November 20 December 2020 23 December 2020

December 20 January 2021 26 January 2021

January 20 February 2021 24 February 2021

February 20 March 2021 24 March 2021

March 20 April 2021 23 April 2021

April 20 May 2021 25 May 2021

May 20 June 2021 23 June 2021

June 20 July 2021 23 July 2021 142 Payment options Payments for land and water rates can be made: • by direct debit weekly, fortnightly, monthly, quarterly or annually – our preferred method • online at www.wdc.govt.nz/Payit with a debit or credit card (please note additional charges may apply) • internet banking • by cash, EFTPOS or credit card at our offices: Forum North, Rust Avenue, Whangārei or 8 Takutai Place, Ruakaka. All payments will be credited first to the oldest amount due. Additional charges Additional penalty on arrears for land and water rates All rates (land and water) from the previous rating years that remain unpaid as at 16 July 2020 will have a further 5% penalty added. This penalty will be added on 5 October 2020. Remission and postponement policies Remission and postponement policies are applied where Council has adopted a policy to alter the amount of rates payable in specific circumstances. These policies may be obtained from our website or on request in person or by phone. Rating base information The following information is required to be provided by the Local Government Act 2002, Schedule 10, clause 20A: • the projected number of rating units within Whangarei District at 30 June 2020 is 42,550 • the projected total capital value of rating units within Whangarei District at 30 June 2020 is $28,441,128,000 • the projected total land value of rating units within Whangarei District at 30 June 2020 is $14,273,588,000

143 Sample of properties showing rates for 2020-21 Randomly selected sample of properties from each category. The rates are based on values assigned as at 1 August 2018. Please note – Northland Regional Council rates are not included. Please refer to their Annual Plan for the impact of their rates on your property.

2019-20 2020-21

Residential property in urban area with a land value of $154,000

General rate - land value $362.45 $370.43